Connecticut officials have launched a new loan programme to support social equity marijuana businesses. The program provides financial assistance for people disproportionately affected by prohibition expand their operations in the legal cannabis industry.
The Social Equity Council (SEC), Department of Economic and Community Development Department (DECD), and Department of Economic and Community Development have announced that applications for the Canna Business Revolving Loan Fund are now available.
The fund is made possible by the legalization law of the state and offers fixed 3 percent loans to social equity licensees. SEC’s Accelerator program offers a 1.5 percent discount to applicants who complete the program.
The money can be used to purchase equipment, expand businesses, increase technology infrastructure, pay for loan closing costs, and conduct environmental studies related construction and renovation.
In a Tuesday press release, SEC Executive Director Ginne Rae Clay stated that “Access to fair and safe funding for cannabis companies is crucial to building strong businesses and standing up.” Connecticut is one of the first states that offers direct financial assistance from the state to “budding” cannabis entrepreneurs.
She said that “access to capital means our cannabis supply chains have one less thing to worry about.” We are thrilled to announce the loan fund, as we continue providing support and technical assistance to ensure the success of and stability of social equity cannabis supply chains.
In accordance with the legalization act signed by Gov. Ned Lamont, (D), signed the legalization law in 2021.
Paul Robertson , SEC chair and DECD deputy commissioner , said that the new loan program was vital in helping applicants access funding quickly to start their cannabis operations. It is an important step in Connecticut’s cannabis market and capitalizing on jobs, investments and other benefits that it will bring in the future.
He said that the Canna Business Revolving Fund was a good example of the Social Equity Council’s efforts to empower those in communities affected by the drug war.
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Connecticut’s cannabis industry has seen consistent growth ever since it was launched in January. The state is now experiencing record sales for the seventh consecutive month. In July, it hit $13 million in recreational marijuana purchases.
As of July 1, Connecticut adults aged 21 or older can grow marijuana plants to use for personal purposes.
The Governor also signed a recent budget bill which includes provisions to provide state-level relief for licensed marijuana businesses who are currently prohibited from making federal deductions due to an Internal Revenue Service code (IRS) known as 280E.
Lamont also signed a separate cannabis omnibus law in June. This bill contains several reforms including the establishment of offsite event permits for marijuana retail stores, the restriction of intoxicating hemp products, and the creation of a new Office of the Cannabis Ombudsman.
Connecticut’s House of Representatives passed a bill in may to expand the state’s legalization of marijuana and expungements laws, by requiring that courts reduce sentences or dismiss charges when a broader range of cannabis-related charges are committed and, therefore, release those who are currently imprisoned on these charges.
In May, the House passed a bill that would criminalize possession of psilocybin mushroom.
However, neither of these bills was taken up by Senate before the end of legislative session.
Lamont also announced in January the state had cleared almost 43,000 records of marijuana-related convictions. In 2021, the legalization bill that Lamont signed became law. It empowered the state government to facilitate mass cannabis remission .
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Photo by Chris Wallis // Side Pocket Images.
The article Connecticut Launches a New Fund to Support Social Equity Marijuana Business first appeared on Marijuana Moment.
