The New Jersey Economic Development Authority (NJEDA) recently launched a new eligibility assessment tool to integrate the first phase of its Cannabis Equity Grant Program. Funded by the state, this $10 million pilot program is focused on supporting marijuana businesses and startups by ensuring equitable access to the state’s legal cannabis industry for communities that were adversely impacted by the war on drugs.
Phase I of the program offers the $250,000 Joint Venture Grant, the largest of its kind in the nation. The program reserves 40% of Phase I funds for qualified social equity applicants, primarily those with prior cannabis convictions or living in economically disadvantaged areas. Additionally, 5% of total program funding is reserved for businesses located in impact zones.
The Eligibility Assessment Tool
The Eligibility Assessment Tool, which is free, aims to assist applicants in determining their eligibility prior to the launch of the Phase I application.
Eligibility Criteria for Joint Ventures Grant
To be eligible for the Joint Ventures Grant, businesses must meet the following criteria:
- Have a conditional or annual license
- Have obtained site control over their real estate
- Have municipal approval
- Have formed their business after March 9, 2020
- Employ 50 or fewer full-time employees
Each $250,000 Joint Ventures Grant will be disbursed in two rounds with the first allocation in the amount of $100,000 occurring upon the execution of the grant agreement. The second disbursement of $150,000 will occur once the grantee receives its annual license and demonstrates that it utilized the first disbursement for eligible costs.
The Joint Ventures Grant seeks to help businesses that do not need technical assistance but still have carrying costs and capital issues associated with converting their conditional license to an annual one.
Expected Contributions of the Cannabis Industry in New Jersey
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. “Cannabis entrepreneurship opportunities can play an integral role in building and returning wealth to individuals and communities that have been significantly harmed by the criminalization of cannabis,” said Tai Cooper, Chief Community Development Officer of NJEDA.
Questions and Discussion
As New Jersey takes steps towards a more inclusive and diverse cannabis industry, what other measures can states take to ensure equitable access for marginalized communities? How can the cannabis industry as a whole address the harms caused by the criminalization of cannabis and promote social equity? These are important questions that require ongoing discussion and action to create a more just and fair industry.
