New Jersey Marijuana 'Seed Equity' Grants Program Launches Application Portal For $8 Million In Aid To Entrepreneurs

New Jersey is accepting applications for its second phase of the marijuana social equity program. The program will award $150,000 in grants and provide eight weeks of technical support to those who are selected.

New Jersey Economic Development Authority says that the so-called Seed equity grants will provide “up to 8 million dollars in funding” for 48 entrepreneurs who have conditional marijuana licenses and meet social equity requirements. The applicant must also have 50 or less employees.

You can use the money to pay for startup costs and operational expenses.

The new funding round’s online application portal was officially launched on Thursday. NJEDA stated that applications will be accepted until all funding has been exhausted.

The application period for our Cannabis Equity Grant Program Phase II is now open. This grant will help NJ’s social justice applicants create a stronger and more inclusive cannabis industry. https://t.co/2sF2prtclY

New Jersey EDA 30 November 2023

The grant comes after NJEDA announced in October that it would award 12 million dollars to 48 licensed cannabis operators as part of a so-called joint venture grant to help them expand and start their businesses.

NJEDA CEO Tim Sullivan stated in a press release that “Under Governor Murphy’s leadership, New Jersey has been at the forefront of creating a strong and fair cannabis market, particularly for communities historically harmed because of the unjust War on Drugs.” The Seed Equity Grant is designed specifically for social equity applicants and will help create a fair, inclusive market that will create jobs, strengthen communities and ensure our entrepreneurs have access to resources they need to succeed.

The $12 million awarded in October was double what was initially planned. NJEDA had originally planned to award money to 24 companies, but Governor Murphy allocated additional funds. The agency stated that Phil Murphy (D), the governor, allowed twice as many companies to receive funding.

Murphy stated in a press release at the time that it was important to continue to support businesses looking to enter and grow on this new market. The Cannabis Equity Grant Program allows for us to expand the number of cannabis businesses within our state, while also focusing on the communities that are most affected by the unethical War on Drugs.

Phase 1 grants allocated 40% of the funds to social equity applicants and 5% for businesses located in Impact Zones. Seed Equity grants will be given to only social equity applicants.

According to NJEDA, in addition to the financial award, technical assistance will “provide licensure process, training on building a cannabis team, financial management guidance, guidance to secure investors, and supply chain management development to name a couple.”

The recordings of two informational webinars that were held in the last month are now available on-line.

Dianna Houenou is the chairperson of the state Cannabis Regulatory Commission. She has stated that the grant program, “has helped set New Jersey’s cannabis market as an excellent example for the rest the country.”

Houenou stated, “We are grateful NJEDA has partnered with us. We were able offer our insights into the cannabis market and present our vision of an equitable New Jersey Market–with a special concern for those without access to family or personal capital or traditional sources for business funding.” We look forward to more targeted investments into local businesses owned by women, minorities and disabled veterans. We look forward to helping the NJEDA make this happen.

CRC began accepting requests only from applicants who are social equity-based for one year, beginning September 27, for certain types of licenses, including wholesale, distribution, and delivery.

Charles Barker, the commissioner who led the initiative, stated at the time that since April 2022, when legal sales begin, the state hasn’t done enough to help entrepreneurs hurt by the war on drugs.

Barker stated that “based on our current framework I do not believe that social equity businesses — those most harmed in the failed war against drugs and that represent the people and communities we want to see participating in the game — are making it through to even be considered for a prize, let alone to open a business.”

New Jersey officials announced recently that $5,5 million of marijuana revenue could be used to fund a grant program for hospitals aimed at reducing violence.

The federal government funded the original program, and last year the state received an extra $10 million through the American Rescue Plan. Officials are now using cannabis-impact zone funding from the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund, created to reinvest into communities most impacted.

Murphy and Attorney-General Matthew J. Platkin announced last month that a third from the same cannabis fund will be used to cover a separate grant program aimed preventing and interrupting violent crime. The fund was created by the state’s Marijuana Legalization Law and consists of money from taxes, industry fees, and civil penalties.

Murphy has also commented on the lack of provisions in New Jersey for marijuana home grows. New Jersey is one of the few states that still criminalizes home-grown cannabis, even for medical purposes.

The Governor said on Monday that he is “very open-minded” about the idea of adding home-grown marijuana to the state’s cannabis law. , however, wants to give licensed industry time to mature before implementing this change .

New Jersey is one of the majority of states that have legalized cannabis and invest at least a portion of their revenue in community reinvestment.

California announced last month that it would be accepting applications for $48 Million in marijuana tax funded community reinvestment grant. These grants support job placement, legal aid, treatment of substance abuse disorders and mental health, as well as referrals to medical services and other services, for communities who have been disproportionately impacted by the drug-war. This program, which offers grants up to $3,000,000, is funded solely by state cannabis revenues.

In June, California regulators from the Department of Cannabis Control announced that they had awarded $4.1 millions to 18 local governments as part of a unique program designed to support licensing programs for cannabis businesses and to curb the illegal market.

DCC also awarded nearly $20,000,000 in research grants funded by marijuana taxes to 16 academic institutions for the purpose of carrying out cannabis studies, including novel cannabinoids such as delta-8 THC, and genetics of many “legacy strains” throughout the state. In February, state officials awarded $15 million to local efforts that promote equity in marijuana.

California and Michigan announced in November new grant rounds that were aimed at promoting social equity. California’s program allocates $15 million in funds for local jurisdictions that have equity programs. Michigan’s puts $1 million towards equity applicants’ employee training, business needs, and/or community investment.

Illinois distributed $45 million last year in grants under its Restore, Reinvest, Renew (R3) Program, which was created under the state’s Adult-Use Cannabis Legalization Law. The funds were distributed to 148 organizations that operate on small budgets and are located in socioeconomically challenged communities.

Arizona has set aside 10 percent from the marijuana tax revenue to create a Justice Redevelopment Fund. This fund provides funding for public health services, counseling and job training, as well as other social services in communities affected negatively by marijuana arrests. The state opened applications for its first round of grants in that program.