Pritzker Administration Opens Applications for First $21 Million in Low Cost Loans for Cannabis Social Equity Applicants

As social equity applicants continue to apply for the coming round of cannabis dispensary licenses, the Pritzker Administration today opened applications for the first $21 million Low Cost Loan Program that was authorized in the cannabis law signed in June. The initiative is funded through the Cannabis Business Development Fund, created by the Cannabis Regulation and Tax Act, to support social equity applicants seeking cannabis business licenses.

The fund is primarily supported through the licensing fees of the first round of dispensaries and cultivators, among other sources. As additional early use licenses for dispensaries and cultivators are awarded, the available funds for loans are expected to surpass $30 million.

"When we made equity the core of the state's new adult-use cannabis market, we wanted to ensure that social equity entrepreneurs had access to capital to get their businesses off the ground, and we're proud to announce that interested applicants can start this process today," said Governor JB Pritzker. "Social equity applicants will have access to low-interest loans and the technical assistance they need to get their business off the ground in this new industry. Illinois took a stronger approach than any other state in the nation to right the wrongs of the past and expand opportunity to create wealth in communities most disproportionately impacted by prohibition, and I encourage people to apply."

"No other state in the nation has taken this robust and unique approach to equity, and we will continue to work to ensure that all communities benefit from this legalization," said Toi Hutchinson, Senior Advisor to the Governor for Cannabis Control. "For the past five years, Illinois has had a homogenous cannabis industry, and it takes a tremendous amount of effort and diligence to turn it around in a constitutional way. The cannabis law does just that - and this loan fund is a critical piece, with the resources coming from the first group of dispensaries so that we can provide substantial seed money for dispensary owners from highly impacted communities."

"By legalizing the adult use of cannabis products, the state has created new opportunities for entrepreneurship. DCEO is committed to leveraging every tool to ensure that individuals who have been shut out from opportunity for far too long have access to wealth creation and career advancement opportunities in this new industry," said Erin Guthrie, Acting Director of the Department of Commerce and Economic Opportunity.

Applications for the loans are available here.   Initially, social equity applicants for the conditional adult use dispensing organization license will be able to apply for a loan.  As the license application periods open for craft grower and infuser licenses in January 2020, those social equity applicants will be able to apply to the loan program as well.

The low-interest loans will be available to those applying for a license to operate a cannabis business that meet the following criteria as set forth in the Cannabis Regulation and Tax Act:

• Has at least 51% ownership and control by one or more Illinois residents who:

o Have lived in a Disproportionately Impacted Area in 5 of the past 10 years.  Disproportionately Impacted Areas are census tracts that have high rates of arrest and incarceration related to cannabis offenses, among other qualifications including high poverty and unemployment. A map of these areas is available here.
o Have been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including cannabis possession up to 500 grams or intent to deliver up to 30 grams.
o Have a parent, child, or spouse that has been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including possession up to 500 grams or intent to deliver up to 30 grams.

• Has more than 10 full-time employees, and more than half of those employees:

o Currently reside in a Disproportionately Impacted Area.
o Have been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including cannabis possession up to 500 grams or intent to deliver up to 30 grams.
o Have a parent, child, or spouse that has been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including possession up to 500 grams or intent to deliver up to 30 grams.

In addition to the above, other criteria will be considered for qualification for a loan, including business plans, financial details, operational and compliance information, and need. While the interest rates for all loans will be below market rate, the specific rate, size and duration of each loan will be determined on a case-by-case basis. Successful applicants will receive pre-approval for a Cannabis Social Equity Loan, conditional on receipt of a license.

In addition to releasing the application for low interest loans for social equity applicants for cannabis licenses, DCEO is continuing to partner with the Community Enterprise and Solidarity Economy Clinic (CESEC) at the John Marshall Law School to offer technical assistance. Through this partnership, social equity applicants are receiving additional help with understanding licensing requirements, preparing business, security, operational plans and other important elements of running a cannabis business. CESEC has already conducted multiple community workshops across the state to educate potential social equity applicants on the cannabis industry.

The following cannabis workshops are planned in the coming days:

• Wright College Humboldt Park Satellite Campus - 1645 N California Ave, Chicago
Tuesday, December 17, 2019 | 6 - 8:30pm
RSVP HERE.

• East St. Louis Community College Center - 655 James R. Thompson Blvd, East St. Louis
Wednesday, December 18, 2019 | 5 - 7:30pm
RSVP HERE.

• George Washington Carver Community Center - 710 Percy Baker Drive, Peoria
Thursday, December 19, 2019 | 1 - 5pm
RSVP HERE.

• Mi Tierra Restaurant, 2528 S. Kedzie Ave., Chicago
Friday, December 20, 2019 | 10am - 12pm
RSVP HERE.

For more information, including a map of Disproportionately Impacted Areas, visit DCEO's cannabis equity webpage: https://www2.illinois.gov/dceo/Pages/CannabisEquity.aspx