NJ launches $5M cannabis business development grant program
The New Jersey Economic Development Authority is rolling out a $5 million initiative to help recreational cannabis entrepreneurs manage the cost of ongoing compliance and operating expenses as they build their businesses.
The Cannabis Business Development (CBD) grant will offer one-time $75,000 reimbursements to eligible cannabis manufacturers, cultivators, retailers as well as testing laboratories in New Jersey.
Applications for the program have been open since 10 a.m on. Nov. 12.
According to the state, the CBD initiative seeks to deliver critical funding to small businesses after a capital-intensive startup phase. It is not open to multi-state operators or transitional alternative treatment centers, the NJEDA said.
Commenting on the new program, NJEDA Chief Development Officer Tai Cooper said, “Centering equity in cannabis economic development means ensuring that capital flows to the local entrepreneurs who need it most.”
“By excluding MSOs and ATCs, this program prioritizes small, independent operators who are investing in New Jersey’s future — creating jobs, generating local wealth, and laying the groundwork for a more inclusive and competitive industry statewide,” Cooper said.
Eligible ventures must hold a valid and current recreational Class 1 (Cannabis Cultivator), Class 2 (Cannabis Manufacturer) or Testing Laboratory annual license digital card issued by the New Jersey Cannabis Regulatory Commission.
Additionally, the NJEDA said companies must be based in New Jersey. They must also submit at least $75,000 in eligible expenses with supporting documentation and proof of payment.
Another tool
In line with Gov. Phil Murphy’s goal to foster an equitable cannabis industry, the program will set aside 5% of funding for businesses located in Impact Zones. These areas – designated by statute – experienced disproportionate impacts from cannabis prohibition or meet other statutory criteria.
In September, the NJEDA announced a $15 million pilot to help bridge capital access gapsfor recreational cannabis cultivators, manufacturers and testing laboratories. The New Jersey Lending for Equity, Access and Financing Program will provide low-cost financing of up to $1.5 million to eligible cannabis ventures.
The two new cannabis initiatives follow the success of the Seed Equity and Joint Ventures Grant Programs.According to the state, those measures have generated nearly $14 million. They also supported the opening of 40 cannabis businesses across New Jersey to date.
NJEDA Chief Executive Officer Tim Sullivan shared, “This grant is a strategic investment in small business growth, job creation, and long-term industry success—driving capital to operators already rooted in our economy and committed to growing here.”
NJ CRC Commissioner Dianna Houenou added, “This grant program is another tool to expand opportunity for diverse cannabis entrepreneurs and to further the vision of an equitable marketplace. We are encouraged by NJEDA’s continued collaboration and commitment to investing in cannabis businesses rooted in New Jersey’s communities.
MORE ON THE NJEDA GRANT HERE