Eligible recreational cannabis entrepreneurs can now benefit from a new $5 million initiative approved by the New Jersey Economic Development Authority (NJEDA) Board.
The Cannabis Business Development (CBD) Grant Program will provide 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.
“Under Governor Murphy’s leadership, New Jersey is setting the national standard for building an equitable, innovation-driven cannabis industry,” NJEDA Chief Executive Officer Tim Sullivan said. “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.”
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,” NJEDA Chief Community Development Officer Tai Cooper said. “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.”
“This grant program is another tool to expand opportunity for diverse cannabis entrepreneurs and to further the vision of an equitable marketplace,” Commissioner Dianna Houenou, chair of the NJCRC said. “We are encouraged by NJEDA’s continued collaboration and commitment to investing in cannabis businesses rooted in New Jersey’s communities.”
More information about the CBD Grant Program will be released in the coming weeks and months. Interested parties can check the NJEDA’s website and social media pages for updates.
