New York City Department of Small Business Services (SBS) Commissioner Dynishal Gross, New York City Economic Development Corporation (NYCEDC) President Andrew Kimball, and Cannabis NYC Founding Director Dasheeda Dawson announced that applications are open for the first phase of the Cannabis NYC Loan Fund. The fund, administered by the cannabis-focused private equity firm Tuatara Capital is now open to applications from Conditional Adult-Use Retail Dispensaries (CAURD) licensees, who will have access to an initial deployment of $2 million in funding. The fund will provide capital to early-stage cannabis businesses to promote the development of an equitable cannabis industry in New York City.
Loans of up to $100,000 will be provided to CAURD licensees to be used for start-up and ongoing operating expenses. Unlike other loan funds, the Cannabis NYC Loan Fund includes unrestricted use for business expenses, with an emphasis on flexibility for borrowers; loan terms of up to three years, and interest rates capped at 9.5 percent. Interested parties must apply through the Loan Fund website.
SBS and Cannabis NYC also offer:
- NYC LEASE, an initiative designed to connect landlords of vacant commercial storefronts with licensed cannabis entrepreneurs seeking viable commercial spaces to operate dispensaries. The temporary program will also provide education about New York State cannabis regulations, and SBS's Commercial Lease Assistance (CLA) program to landlords and CAURD licensees. The first NYC LEASE networking event will be on Wednesday, October 9. Interested attendees must register in advance here;
- Cannabis Reentry Employment Assistance and Training Experience (CREATE), the city's pioneering pilot initiative for cannabis workforce development. A partnership between the Mayor's Office for Criminal Justice (MOCJ) and Cannabis NYC, CREATE provides individuals recently released from incarceration with the necessary job-readiness skills to thrive as retail dispensary associates in the rapidly expanding legal adult-use cannabis industry. The next CREATE cohorts begin on November 4, 2024, and December 2, 2024. Applications are open on the MOCJ website;
- FastTrac for Cannabis Entrepreneurs, a free educational program that connects cannabis business owners with high-quality training and advice proctored by leading players in the legal cannabis industry. Access to the program is available to both ancillary and licensed cannabis entrepreneurs at all stages of the startup and licensing process and is presented virtually as a 10-session, 30-hour series of online courses. Since its launch, FastTrac for Cannabis Entrepreneurs has registered more than 400 participants with 125 graduates. Cohorts begin every six weeks, with those interested encouraged to apply here;
- Cannabis Account Managers through SBS's NYC Business Solutions Centers, which offer free services in all five boroughs including business courses, consultations, financing assistance, legal assistance, hiring assistance, government navigation, compliance consultations, and Minority- and Women-owned Business Enterprise (M/WBE) Certification.
The Cannabis NYC Loan Fund's first phase application will be open through November 4, 2024. Phase two is expected to launch in spring of 2025 with at least $6 million available for funding. Phase two aims to expand the fund's size through additional capital partners with a goal of financing early-stage and more mature licensed cannabis businesses across all license types, with CAURD licensees still prioritized.
"The CREATE initiative provides justice-impacted individuals with pathways to gainful employment in the city's burgeoning legal cannabis industry. We are proud to work with Cannabis NYC to implement this innovative initiative," said MOCJ Director Deanna Logan. "CREATE exemplifies the positive impacts of cross-industry collaboration and contributes to our city's economic vibrancy. We are grateful for the Adams administration's leadership as we continue to invest in public safety through cutting-edge methods that build equity for all."
"New York understands that extending financial resources to help small business thrive is a crucial part of ensuring social equity in the cannabis marketplace, said Felicia A.B. Reid, Acting Executive Director of the New York State Office of Cannabis Management. "The Cannabis NYC Loan Fund is an exciting and necessary resource that gives CAURD licensees the ability to invest in their growth, better navigate their operational needs, and deepen their market and community impacts."
"The 2021 MRTA envisioned a thriving, equity-centered cannabis industry where those most harmed by prohibition could benefit economically and build generational wealth," said New York State Assembly Majority Leader Crystal Peoples-Stokes. "Access to capital remains a significant hurdle for many CAURD licensees. The Cannabis NYC Loan Fund is a crucial step in the right direction, providing flexible financing to help under-resourced operators get their businesses off the ground. New York City's investment in equitable cannabis entrepreneurship will foster innovation, create jobs, and empower communities. I'm confident it will serve as a model for other cities and states to follow."
"The Cannabis NYC Loan Fund is a great opportunity for Queens cannabis small business owners who are diligently following the law to grow the enterprise and help create a booming new economic industry," said Queens Borough President Donovan Richards Jr. "I encourage local, small-scale cannabis entrepreneurs take advantage of this landmark initiative in the months to come, as we work to empower those who have been historically targeted by our criminal justice system in the past."
"The Cannabis NYC Loan Fund is a vital step toward building an equitable and thriving cannabis market in New York City, ensuring that Black, Brown, and all minority entrepreneurs have access to the resources they need to succeed," said New York City Council Member Kevin C. Riley. "By empowering communities disproportionately impacted by cannabis-related laws, we're creating a supported, competitive, and well-regulated market where licensed dispensaries can thrive, reducing the demand for illegal operations. With financial support for startup and operational costs, legal businesses are better positioned to meet consumer demand with quality products, driving economic growth and community safety. I'm proud to stand with SBS and EDC in building a safe and inclusive cannabis ecosystem."
"The legalization of cannabis in New York State was a sincere effort to rectify years of disproportionate punishment for marijuana-related offenses," said New York City Council Member Carlina Rivera. "We must support legal vendors who operate within a framework that protects public health and safety, and who are genuinely committed to equity and justice in their business model. As access to capital remains a significant barrier to opening a dispensary, I commend Cannabis NYC for launching a loan fund and their continued support for local entrepreneurs."
"Tuatara is excited to support New York City in the launch of the Cannabis NYC Loan Fund," said Al Foreman, L.P. Partner, Tuatara Capital. "Over the last few months our teams have been working in partnership to arrange the right people, processes, and technology needed for the opening of the Cannabis NYC Loan Fund application window. We look forward to reviewing the pool of prospective applicants and to having the opportunity to help facilitate funding to qualified borrowers in support of an equitable NYC cannabis industry."
