Listen to this articleThe New Jersey Economic Development Authority is launching a $15 million pilot to help bridge capital access gaps for recreational cannabis cultivators, manufacturers and testing laboratories.
As part of the New Jersey Lending for Equity, Access and Financing Program, the state will provide low-cost financing of up to $1.5 million to eligible cannabis ventures. The NJEDA announced NJ LEAF in a Sept. 15 press release.
According to the state, the initiative seeks to help businesses grow and stabilize operations in New Jersey by providing flexible lending options for both fixed assets and working capital. Fixed asset loan amounts will range from $100,000 to a maximum of $1.5 million. Meanwhile, working capital support loans will extend from $100,000 to a maximum of $500,000, the agency said.
According to the NJEDA, eligible businesses must hold a valid and current recreational Class 1 (Cannabis Cultivator), Class 2 (Cannabis Manufacturer) or Testing Laboratory annual license digital card issued by the New Jersey Cannabis Regulatory Commission.
Additionally, the NJEDA said companies must:
- Be based in New Jersey
- Employ fewer than 250 full-time employees
- Have been in operation for at least one calendar year with annual gross revenues of $5 million or less
In line with Gov. Phil Murphy’s goal to foster an equitable cannabis industry, 5% of funding under the program will be set aside for businesses located in Impact Zones. Designated by statute, these areas were disproportionately impacted by cannabis prohibition or meet other statutory criteria.
Supporting a burgeoning industry
Commenting on the program’s rollout, NJEDA Chief Community Development Officer Tai Cooper said it expands on the agency’s “already successful efforts to support the state’s burgeoning cannabis industry.”
“New Jersey’s continued investment into this strategic sector is unlocking much-needed resources for diverse entrepreneurs, helping create jobs and strengthen communities,” Cooper said.
In May, the NJEDA board approved a $5 million grant program to help recreational cannabis entrepreneurs manage the cost of ongoing compliance and operating expenses as they build their businesses.
The NJEDA’s two new cannabis initiatives follow the success of the Seed Equity and Joint Ventures Grant Programs. According to the state, those measures have delivered nearly $14 million and supported the opening of 40 cannabis businesses across New Jersey to date.
