The New Jersey Economic Development Authority (NJEDA) board approved a new $15 million pilot program to bridge capital access gaps for recreational cannabis cultivators, manufacturers and testing laboratories.
The New Jersey Lending for Equity, Access, and Financing (NJ LEAF) Program will provide low-cost financing of up to $1.5 million to eligible cannabis companies, expanding upon NJEDA’s already-established cannabis-focused financial tools, empowering small businesses and advancing the state’s commitment to equitable economic development.
“Under Governor Phil Murphy’s leadership, New Jersey is building an equitable cannabis market by supporting every link in the supply chain,” said NJEDA Chief Executive Officer Tim Sullivan. “NJ LEAF will ensure companies that are cut off from traditional financial resources have access to the capital needed to succeed, helping to create jobs, strengthen communities and solidify New Jersey’s long-term growth as a national leader in the cannabis market.”
The NJ LEAF Program will provide flexible lending options for both fixed assets and working capital, helping eligible businesses grow and stabilize their operations in New Jersey. Fixed asset loan amounts will range from $100,000 to a maximum of $1.5 million, and working capital support loans will extend from $100,000 to a maximum of $500,000. The funding options offer valuable resources for businesses to invest in property, upgrade equipment and cover day-to-day operational expenses.
“NJ LEAF will build upon the NJEDA’s already-successful efforts to support the state’s burgeoning cannabis industry,” said NJEDA Chief Community Development Officer Tai Cooper. “New Jersey’s continued investment into this strategic sector is unlocking much-needed resources for diverse entrepreneurs, helping create jobs and strengthen communities.”
Eligible businesses 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 (NJCRC). In addition, businesses must be based in New Jersey, employ fewer than 250 full-time employees, and must have been in operation for at least one calendar year with annual gross revenues of $5 million or less.
In line with Gov. Murphy’s efforts to foster an equitable cannabis industry, 5% of funding under the program will be set aside for businesses located in Impact Zones, which are areas designated by statute that were disproportionately impacted by cannabis prohibition or meet other statutory criteria. For more information on eligibility and funding uses, visit https://www.njeda.gov/nj-leaf or email businessbanking@njeda.gov.
“It has been heartening to see the NJEDA’s commitment to financially supporting New Jersey’s cannabis entrepreneurs,” said NJCRC Chairwoman Dianna Houenou. “Our applicants and operators face obstacles that are unique to the industry without access to the financial tools available to other business owners. I am grateful that NJEDA with NJ LEAF and its grant programs are attempting to close that gap.”
In May, the NJEDA board approved the $5 million Cannabis Business Development (CBD) Grant Program, which will provide targeted financial support to eligible recreational cannabis entrepreneurs to help alleviate and manage the cost of ongoing state and local compliance, as well as operating expenses.
The NJEDA’s two new cannabis programs follow the success of the Seed Equity and Joint Ventures Grant Programs, which have delivered nearly $14 million and supported the opening of 40 cannabis businesses across New Jersey to date.
