The New Jersey Economic Development Authority (NJEDA) board approved a new $15 million pilot program to address capital access gaps for cannabis businesses. The New Jersey Lending for Equity, Access, and Financing (NJ LEAF) Program is designed to provide low-cost loans to cultivators, manufacturers, and testing laboratories, bolstering the state’s cannabis supply chain.
The new program offers flexible lending options for both fixed assets and working capital. Loans for fixed assets range from $100,000 up to $1.5 million, while working capital loans can be up to $500,000. This funding is intended to help eligible businesses invest in property, upgrade equipment, and cover day-to-day operational expenses.
“Under Governor Phil Murphy’s leadership, New Jersey is building an equitable cannabis market by supporting every link in the supply chain,” NJEDA Chief Executive Officer Tim Sullivan said. “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.”
To be eligible, businesses must hold a valid annual license from the New Jersey Cannabis Regulatory Commission (NJCRC) for cultivation, manufacturing, or testing. They must be New Jersey-based, have fewer than 250 employees, and have been in operation for at least one year with annual gross revenues of $5 million or less. In a push for equity, five percent of the funding is reserved for businesses located in Impact Zones, areas disproportionately affected by past cannabis prohibition.
NJCRC Chairwoman Dianna Houenou praised the initiative, noting the unique obstacles faced by cannabis entrepreneurs. “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,” she said.
The NJ LEAF program builds on the NJEDA’s existing efforts to support the cannabis industry, including the recently approved $5 million Cannabis Business Development (CBD) Grant Program and the successful Seed Equity and Joint Ventures Grant Programs, which have provided nearly $14 million in funding to date.
