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The New Jersey Economic Development Authority (NJEDA) announced the launch of a new eligibility assessment tool that integrates the first phase of its Cannabis Equity Grant Program.
Funded by the state, the $10 million pilot program consists of 2 phases with the first phase being for the $250,000 Joint Venture Grant, the largest of its kind in the nation.
About The Program
Focused on supporting marijuana businesses and startups by ensuring that communities adversely impacted by the war on drugs have equitable access to the state’s legal cannabis industry, the program reserves 40% of Phase I funds for qualified social equity applicants characterized primarily as those with prior cannabis convictions or live in economically disadvantaged areas.
Additionally, “5% of total program funding is reserved for businesses located in impact zones, which are areas targeted based on previous levels of marijuana arrests, population, unemployment rates, and additional socioeconomic factors.”
“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,” said Tim Sullivan, CEO of NJEDA. Moreover, Tai Cooper, Chief Community Development Officer of NJEDA, stated: “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.”
The Eligibility Assessment Tool, which is free, aims to assist applicants in determining their eligibility prior to the launch of the Phase I application.
About The Joint Ventures Grant
Eligibility: The Joint Ventures Grant will allocate a total of $6 million in funding to 24 entities that have a conditional or annual license, have obtained site control over their real estate, and have municipal approval. Also, eligible applicants must have formed their business after March 9, 2020, and 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,” per the release. “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.”
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.
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Image Credits: JSmed, 7raysmarketing By Pixabay Edited By Benzinga
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Image and article originally from www.benzinga.com. Read the original article here.