local
Nonprofit that awarded ‘incorrect’ promise grants can keep up to $7 million to run the program
By Ryan Raiche at KSTP 5 Eyewitness News (ABC)
· July 14, 2026
· 3 min read
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Nonprofit that awarded ‘incorrect’ promise grants can keep up to $7 million to run the program
The no...
Key takeaway The Minnesota Department of Employment and Economic Development (DEED), which oversees the program, has since confirmed it is seeking to recover more than $27,000 in grants awarded to the two businesses highlighted in the investigation.
Why this matters in The Minneapolis
The Neighborhood Development Center's ability to retain up to $7 million from the Promise Act program raises questions about the balance between administrative costs and direct support for small businesses in the Twin Cities. As the program's administrator, NDC plays a crucial role in distributing funds to eligible businesses, but the recent scrutiny over grant eligibility and oversight suggests that a more robust review process is needed. The fact that the Minnesota Department of Employment and Economic Development audits only 10% of the grants approved by NDC means that the nonprofit bears significant responsibility for ensuring the program's integrity. As state officials seek to recover misawarded grants, the community will be watching to see how NDC strengthens its oversight process and whether the program can achieve its intended goal of supporting local small businesses. The program's success will depend on striking the right balance between administrative efficiency and accountability.
About this story
Original reporting by KSTP 5 Eyewitness News (ABC) . The Minneapolis surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSTP 5 Eyewitness News (ABC) . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: July 14, 2026 ·
Source: KSTP 5 Eyewitness News (ABC) ·
Reading time: 3 min
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What is this story about? @keyframes spin {
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Nonprofit that awarded ‘incorrect’ promise grants can keep up to $7 million to run the program
The no...
When was this published? This article was first published on July 14, 2026 by KSTP 5 Eyewitness News (ABC) and curated for The Minneapolis readers.
Who reported this story? This story was reported by Ryan Raiche at KSTP 5 Eyewitness News (ABC). To learn more about how The Minneapolis selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The Minneapolis, or browse our daily briefing and topic hubs .
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