The New Jersey Economic Development Authority (NJEDA) board approved the creation of the Cannabis Business Development (CBD) Grant Program, a new $5 million initiative designed to provide targeted financial support to eligible recreational cannabis entrepreneurs in New Jersey. The program will grant one-time reimbursements of $75,000 to help alleviate and manage the cost of ongoing state and local compliance, as well as operating expenses, for early-stage companies.
Funded through cannabis sales tax revenue allocated by the FY25 State Appropriations Act, this grant marks the third cannabis equity initiative launched by the NJEDA and reinforces the state’s commitment to building an inclusive, sustainable cannabis industry.
“Under Gov. Murphy’s leadership, New Jersey is setting the national standard for building an equitable, innovation-driven cannabis industry,” said NJEDA Chief Executive Officer Tim Sullivan. “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.”
The CBD Grant Program follows the success of the Seed Equity and Joint Ventures Grant Programs, which have delivered nearly $14 million and supported the openings of 40 cannabis businesses across New Jersey to date. Reinforcing the state’s commitment to equity, the CBD Grant shifts focus to reimbursing costs for operating businesses — delivering critical funding after a capital-intensive startup phase.
To be eligible for the CBD Grant Program, a business must be open and operating, or close to launching, as evidenced by a valid and current NJ Cannabis Regulatory Commission (NJCRC) annual license and digital card in one of the following categories: Class 1 (Cultivator), Class 2 (Manufacturer), Class 5 (Retailer) or Testing Laboratory. To qualify for the CBD Grant Program, applicants must hold a valid and current NJCRC annual license digital card in one of the four eligible categories.
To ensure that resources flow to small businesses that have historically lacked access to capital, Multi-State Operators (MSOs) and transitional Alternative Treatment Centers (ATCs) are not eligible to apply. Additionally, applicants must not have previously received funding through the NJEDA’s Joint Ventures or Seed Equity Grant programs.
“Centering equity in cannabis economic development means ensuring that capital flows to the local entrepreneurs who need it most,” said NJEDA Chief Community Development Officer Tai Cooper. “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.”
Five percent of funding will be made available for businesses operating in New Jersey Cannabis Regulatory Commission (NJCRC) designated Impact Zones, which stimulate economic development in historically underserved areas. These zones are designated by the NJCRC on factors such as past cannabis arrests, law enforcement activity, unemployment and population.
“This grant program is another tool to expand opportunity for diverse cannabis entrepreneurs and to further the vision of an equitable marketplace,” said Commissioner Dianna Houenou, chair of the NJCRC. “We are encouraged by NJEDA’s continued collaboration and commitment to investing in cannabis businesses rooted in New Jersey’s communities.”
