The New Jersey Economic Development Authority (NJEDA) Board announced the creation of the Cannabis Equity Grant Program, aimed at helping start-ups in the state develop with assistance for early-stage expenses and technical training. Up to $10 million in state funding will be made available for applicants.
“My Administration is doubling its efforts to cultivate small businesses in burgeoning industries with massive untapped potential,” said Governor Phil Murphy. “The establishment of the Cannabis Equity Grant Program will help aspiring small business owners meet start-up expenses in a pivotal sector within our state’s ever-growing economy. Most importantly, the program will erode considerable barriers to access for communities of color, which this program will help to equip with the resources they need to not just enter, but thrive, in this exciting new industry.”
Following the 2020 referendum legalizing adult-use recreational marijuana in New Jersey and the 2021 legislation establishing the framework for regulated growth and sales, Governor Phil Murphy signed legislation in June 2022 allowing the Authority to offer qualifying small businesses licensed in the cannabis industry to pursue assistance.
“I am in full support of funding the Cannabis Equity Grant Program to help private entities create business start-ups in New Jersey,” said Lt. Governor Sheila Y. Oliver. “The Murphy Administration fought for the legalization of cannabis because of our commitment to social justice issues. Our administration will continue working to grow a cannabis industry that reflects the diversity of our state, protects access for medical marijuana patients, prioritizes justice, and promotes equal opportunities for communities of color.”
“Under Gov. Murphy’s leadership, New Jersey is committed to building a thriving and inclusive cannabis sector that maximizes opportunities for underserved communities and people impacted by the War on Drugs, and this program is a major step toward that goal,” said NJEDA Chief Executive Officer Tim Sullivan. “We look forward to continuing to partner with the Cannabis Regulatory Commission to advance additional programs to support entrepreneurs in this rapidly developing sector.”
$10 million will be made available in the initial pilot program. 60 percent of that amount will be made available to qualifying social equity applicants, like those who have previous cannabis convictions or live in economically disadvantaged areas. Economically disadvantaged areas are defined by the New Jersey Cannabis Regulatory Commission (CRC) as zip codes that meet certain socioeconomic criteria. These businesses can receive up to $250,000 to help with certain start-up expenses like regulatory fees, rental expenses, utilities, and wages. Qualifications for these businesses include holding a conditional cannabis license, business formation after March 2020, and employing 50 or fewer employees. Grantees will also participate in technical assistance and business education courses, provided by the Authority.
“The Cannabis Equity Grant Program will help level the playing field for entrepreneurs looking to enter New Jersey’s adult-use cannabis market,” said Assemblywoman Eliana Pintor Marin (D-Essex). “By prioritizing equity and inclusion, we can establish a socially responsible cannabis industry that will create jobs and opportunities for those who have been disproportionately impacted.”
The remaining 40 percent of the initial pilot will be open to all entities who have secured municipal approval and site control over their business’s real estate. Applicants with conditional licenses and existing approvals can receive up to $250,000 in grant support for eligible expenses.
Tied to the legislation signed earlier this year are the allocations for Impact Zones, which are areas targeted based on previous levels of marijuana arrests, population, unemployment rates, and additional socioeconomic factors. Five percent of the total $10 million will be reserved for businesses located in Impact Zones.
“We realize how important it is to empower cannabis businesses, many of which have faced barriers to accessing financial capital in the past,” said NJEDA Chief Community Development Officer Tai Cooper. “Communities that suffered unfairly during the criminalization of cannabis need the chance to benefit from new entrepreneurial opportunities created by cannabis legalization and regulated sales. We want to see these opportunities extended to those businesses that will help fill storefronts, warehouses, and other commercial properties that closed their doors during the pandemic and bring new jobs to communities where there is the greatest need.”
“We are pleased with the efforts of the NJEDA to authorize critical resources that will assist our constituency in advancing their plans to participate in the recreational cannabis industry in our state,” said John E. Harmon, Sr., Founder, President & CEO, African American Chamber of Commerce of New Jersey. “I applaud the leadership of the NJEDA for their willingness to listen, and engage in a frank dialogue with business enterprises, that have capital at risk, about their plans to bring value to the marketplace; it’s through these best practices that we can realize a transformation that will lead to a more equitable New Jersey.”
To further encourage participants in economically disadvantaged areas, the application fee of $1,000 for those in these locations may be waived. The applications window will stay open for 180 days following the Grant Program’s launch.
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