On Monday, the governor of Colorado announced that his state will launch a loan program for social equity marijuana businesses.
Gov. Gov.
This state-run program is designed to fill the gap left by marijuana businesses that are not eligible for traditional lending programs. It also provides resources to small businesses in Colorado as its cannabis market continues to grow.
In a Monday press release, Polis stated that “this landmark loan program creates and retains 239 well-paying positions and promotes equity in the cannabis sector by providing growing business access to funding.” “I am dedicated to saving small business money and making sure our state is a great place for people to start businesses in all industries.”
He said, “Thanks to NuProject for working with Colorado to achieve this exciting milestone. We are also grateful to NuProject’s support of innovation in Colorado’s cannabis industry.”
The loans are intended to finance renovations, expansions and equipment costs. They can also be used to purchase real estate or “working capital”.
NuProject CEO Jeannette Horton stated that the company is “committed to redirecting the traditional flow of funding so that small businesses in the cannabis sector, especially those that have historically been excluded from accessing capital, can gain the resources they require to grow their business.”
She stated that “when cannabis business owners are able to access financial support, and know how to put this funding to good use, they will be able to run better businesses as well as have the chance to build generations of wealth in the cannabis industry.”
The fund will consist of a revolving system, with an initial investment of $1 million. Interest collected on loan repayments will also be reinvested in the program. The state anticipates that this initial $1 million investment will result in $2.9 millions in lending in the next ten years.
Eve Liberman is the executive director of Colorado’s Office of Economic Development and International Trade.
She said, “Together, with NuProject the Cannabis Business Office makes it possible for marijuana businesses to grow, creating new jobs and contributing to a Colorado economic system that works for all.”
Marijuana Moment tracks more than 1,000 cannabis and drug policy bills that have been introduced in state legislatures, and Congress. Patreon supporters who pledge at least $25/month gain access to our interactive charts, maps and hearing calendar.
Discover more about our marijuana bills tracker. Become a Patreon supporter to gain access.
—
CBO stated that this was its third financial program supported by the state, specifically to support social equity cannabis businesses. In 2021, the state launched a cannabis grants program with similar objectives.
This is the first of its kind loan program in Colorado. However, other states such as California, Illinois, and Massachusetts have also taken similar measures to help businesses owned by those who were disproportionately affected by prohibition.
California officials , for instance, announced a $30-million program in 2020, which provides funding to the local governments so they can distribute grants and loan to cannabis equity businesses. This is a little different than Colorado’s initiative, which offers loans directly to licensees.
The Colorado House has recently passed a bill that allows adults to purchase marijuana online . Supporters say that this will benefit businesses who have relied heavily on cash transactions, which put them at risk for crime.
As the cannabis industry continues to grow, the state has taken measures to promote the energy efficiency of the sector. also ensure that social equity is a priority.
The Governor recently announced – the first marijuana vending machines in the state. This machine can package, label, and dispense cannabis products to adults within 50 seconds.
Polis issued an executive order last year to protect workers from being denied professional licenses if they use marijuana according to state law. This move prevents the state from providing assistance to any investigations conducted outside of Colorado that may result in penalties for employment.
Colorado officials have repeatedly urged the federal government to enact reform. The governor contacted U.S. Department of Health and Human Services Secretary Xavier Becerra, to inquire about the timetable for a review of federal marijuana scheduling by the HHS that was directed by President Joe Biden last year.
Last year, voters approved a ballot measure that legalized certain entheogenic drugs and allowed psilocybin treatment.
The Colorado Senate approved in committee a bill last week to establish a regulatory framework under voter-approved measure for legal psychedelics. has received mixed feedback so far from stakeholders and advocates , including in the hours of testimony given at an hearing last week.
The Senate president, as part of the ongoing process to create rules, filed a separate bill last Thursday to set up the advisory board.
The first time Marijuana Moment published the post Colorado Governor Announces Landmark Marijuana Lending Program to Support Social Equity Businesses.
