CANNABIS SEED EQUITY GRANT PROGRAM
Based on significant interest in the Cannabis Equity – Seed Equity Grant, the NJEDA has already received applications exceeding the amount of funding available under this program. As a result, the NJEDA is no longer accepting new applications for this program.
The Cannabis Equity Grant Program is a $20 million pilot program that is open to conditional and annual New Jersey recreational cannabis license holders. It will utilize a state appropriation to support new businesses in the cannabis industry for their start up and operational costs during the first three years of operation.
DOLLAR AMOUNT
The Seed Equity Grant will award $150,000 grants to eligible businesses.
BENEFITS
Businesses will receive funding for operational costs and will be eligible for technical assistance.
ELIGIBILITY
Qualifications for these businesses include holding a conditional cannabis license, business formation after March 9, 2020, and employing 50 or fewer employees.
The Cannabis Equity Grant Program is aimed at assisting start-ups by providing businesses with grant funding for early-stage start-up expenses and operational costs. There is up to $20 million in state funding available for applicants. $8 million of that state funding will be allocated to the Seed Equity Grant Program.
Applications will be accepted on a rolling basis until funding is exhausted.
Qualifications for eligible businesses include holding a conditional New Jersey recreational cannabis license, business formation after March 9, 2020, and employing 50 or fewer employees. Applicants are limited to one application per federal EIN. Applicants operating from multiple locations under a single EIN are limited to one application under the sole EIN but may pool project costs from multiple locations into a single application.
Requirements for Seed Equity Grant
- Requires a conditional license.
- Targeted toward entities with a conditional license and want to obtain an annual license but need more assistance to progress to their actual application.
- 48 awards
- EDA sponsored Technical Assistance Training enrollment is mandatory.
- Open to Social Equity applicants; 5% set aside for businesses located in Impact Zones.
The Seed Equity Grant will award $150,000 to eligible businesses. Only one award is allowed per Employer Identification Number (EIN) for the life of the program.
Application Fee: $1,000
There is a fee waiver for eligible Seed Equity Grant applicants.
A Division of Taxation Tax Clearance Certificate is required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online. Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance. If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.
PROGRAM GUIDE
Frequently asked questionsQUESTIONS
For more information or to ask a specific question please send an email to cannabis@njeda.gov and a team member will reach out to you.