CANNABIS JOINT EQUITY GRANT PROGRAM
Based on significant interest in the Cannabis Equity – Joint Ventures Grant, the NJEDA has already received applications that are significantly in excess of the amount of funding available under this program at this time. As a result, the application for the Cannabis Equity – Joint Ventures Grant is now closed.
Our second program, Seed Equity, is opening on Thursday, November 30th at 10:00 a.m. ET
See the list of Cannabis Joint Equity Program Awardees here.
NJEDA is currently developing financial assistance products to support cannabis and cannabis-related businesses – more information will be shared on the NJEDA website, when available.
The Cannabis Equity Grant Program is a $20 million pilot program that is open to conditional and annual New Jersey recreational cannabis license holders. It will utilize a state appropriation to support new businesses in the cannabis industry for their start up and operational costs during the first three years of operation.
DOLLAR AMOUNT
The Joint Ventures grant will award $250,000 grants to eligible businesses.
BENEFITS
Businesses will receive funding for operational costs and will be eligible for technical assistance.
ELIGIBILITY
Qualifications for these businesses include holding a conditional cannabis license, business formation after March 9, 2020, and employing 50 or fewer employees.
The Cannabis Equity Grant Program is aimed at assisting start-ups by providing businesses with grant funding for early-stage start-up expenses and operational costs. There is up to $20 million in state funding available for applicants. $6 million of that state funding will be allocated to the Joint Venture Grant Program.
Applications will be accepted on a rolling basis until funding is exhausted.
Qualifications for eligible businesses include holding a conditional New Jersey recreational cannabis license, business formation after March 9, 2020, and employing 50 or fewer employees. Applicants are limited to one application per federal EIN. Applicants operating from multiple locations under a single EIN are limited to one application under the sole EIN but may pool project costs from multiple locations into a single application.
Requirements for Joint Ventures
- Targeted toward entities that are farther along in the licensing process but still have significant carrying costs.
- Requires conditional or annual license, secured real estate, and municipal approval (upload information proving approvals).
- 24 awards
- Open to all applicants; 40% set-aside for social equity applicants; 5% set aside for Impact Zones
The Joint Ventures grant will award $250,000 to eligible businesses. Only one award is allowed per Employer Identification Number (EIN) for the life of the program.
Application Fee: $1,000
For the Joint Ventures award, there will be a pre-application review. An application fee will not be required until after pre-application review. To further encourage participants in economically disadvantaged areas, the application fee of $1,000 for those in these locations may be waived.
A Division of Taxation Tax Clearance Certificate is required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online. Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance. If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.
PROGRAM GUIDE
QUESTIONS
For more information or to ask a specific question please send an email to cannabis@njeda.com and a team member will reach out to you.