New Jersey has awarded $12 million to 48 licensed cannabis businesses to help them expand and start their business. This is part of New Jersey’s efforts to remove barriers for people to enter the legal cannabis industry, particularly those from communities that have been disproportionately affected by the drug-war.
The New Jersey Economic Development Authority, along with other state and municipal officials, announced Wednesday the new funding phase.
The grant round was initially planned to be a 24 company selection. However, Gov. NJEDA had originally planned to award money to only 24 companies, but Governor Christie allocated additional funds. Phil Murphy (D), the Democratic Governor, allowed twice as many companies to receive funding.
Murphy stated in a press release that it was important to continue to support businesses looking to enter or grow within the emerging cannabis market. The Cannabis Equity Grant Program allows our state to expand its pool of cannabis-related businesses while also focusing on the communities that are most affected by the unethical War on Drugs.
New Jersey’s Cannabis Equity Grant Program awarded the new grantees with so-called Joint Venture Grants. The money will be used to provide adult-use cannabis companies with capital in order to manage the transition to annual licenses from conditional licensing. NJDEA announced that 40 percent of the funds would be allocated to social equity applicants and 5 percent for businesses located in Impact Zones.
The grants will provide diverse cannabis entrepreneurs with access to capital. Applications for Phase II of the Seed Equity Grants will be available soon! Read more HERE: https://t.co/bXoo9Ct079
New Jersey EDA October 3, 2020
According to the NJEDA press release, a second phase of grants known as Seed Equity Grants will be launched later this year. Each grant is worth $150,000 and comes with technical assistance. One hundred percent of the funding will go to social equity applicants. The agency stated that in addition to the financial award, technical assistance will provide “training on the licensing process, help building a cannabis team, financial management guidance, and supply chain management development to name a couple.”
Dianna Houenou said that the grant program has “helped to 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 supporting NJEDA in making 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 utilizing cannabis impact zones funding from the state’s Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund, created to reinvest into communities most impacted with marijuana criminalization.
Murphy and Attorney-General Matthew J. Platkin announced last month that a separate grant program aimed to interrupt and prevent violent crime would be funded by a third from the cannabis fund. The fund was created by the state’s Marijuana Legalization Law and consists of money from taxes, industry fees, and civil penalties.
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.
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.
New York Opens Marijuana Business License Application Period As Governor Highlights Efforts To Combat Illegal Market
The post New Jersey Awards 12 Million Dollars In Grants To Marijuana Business, With A Focus On Helping Communities Hurt By Drug War first appeared on Marijuana Moment.
