Is your cannabiz eligible for grant funding? New NJEDA tool lets you check

The New Jersey Economic Development Authority launched a free online tool that will help prospective cannabis business owners determine if they are eligible to receive up to $250,000 in grant funding to establish themselves in the state’s legalized marketplace.

Under the newly created, state-funded pilot program, $10 million will be made available to assist startups with early-stage expenses, such as regulatory fees, rent, utilities and wages, as well as technical training.

In a March 7 press release, the NJEDA said the new eligibility assessment tool is specifically for the first phase of the program, the Joint Ventures Grant.

According to the NJEDA, 40% of the initial round of grants will be disbursed to qualifying social equity applicants, such as those who have previous cannabis convictions or live in economically disadvantaged areas.

Altogether, the Joint Ventures Grant will disburse $6 million to 24 businesses with a conditional or annual license from the New Jersey Cannabis Regulatory Commission (CRC) that have obtained site control over their real estate and municipal approval, the state said. Additionally, businesses must have been formed after March 9, 2020, and employ 50 or fewer employees.

Each $250,000 grant will be distributed in two rounds, with the first allocation of $100,000 occurring upon execution of the agreement. The balance will be awarded once the grantee secures its annual license from the CRC as well as demonstrates that it used the first part of the funding for eligible costs, the state said.

Applicants who are not eligible for the Joint Ventures Grant may qualify for the second phase of the program, which will launch later this year, according to the NJEDA.

The $150,000 Seed Equity Grant is solely for applicants who meet the CRC’s criteria for social equity and have received a conditional license, but not yet secured real estate or municipal approval and need help converting their conditional license to an annual one.

“By 2025, the cannabis industry is expected to contribute approximately $2.4 billion to New Jersey’s economy. However, access to capital remains a significant barrier to entry, particularly for people of color. NJEDA is thrilled to take the first step in ensuring that businesses that have been historically and intentionally locked out of funding opportunities have access to the capital needed to participate in this growing industry,” said Tim Sullivan, CEO of NJEDA. “I want to thank our partners in this crucial work, the New Jersey Cannabis Regulatory Commission and the Business Action Center, for collaborating with NJEDA to make sure that these dollars help to fulfill Gov. [Phil] Murphy’s commitment to building stronger and fairer communities in our state.”