The New Jersey Economic Development Authority (NJEDA) is set to launch its Cannabis Business Development (CBD) Grant Program later this fall, with the official date yet to be announced. Commonly referred to as the NJEDA Cannabis Grant, this initiative is a major step toward leveling the playing field for small and independent cannabis businesses in New Jersey’s rapidly expanding adult-use market.
The NJEDA Cannabis Grant is a $5 million pilot reimbursement program designed to help licensed cannabis operators cover critical business expenses. Eligible businesses can receive up to $75,000 in one-time funding, providing crucial financial support for operations, compliance, and growth. The grant aims to reduce the steep costs of entry and expansion that often keep local entrepreneurs from thriving in the cannabis industry.
Notably, 5% of total program funds are reserved for cannabis businesses located in Impact Zones communities that have been disproportionately affected by the enforcement of past cannabis laws.
To qualify, applicants must hold a valid annual license issued by the New Jersey Cannabis Regulatory Commission (CRC). Eligible license types include Class 1 Cultivators, Class 2 Manufacturers, Class 5 Retailers, and Testing Labs (except those serving only the medicinal market). Applicants must also be in good standing with the CRC, the New Jersey Department of Labor, and the Department of Environmental Protection.
Certain groups including multi-state operators (MSOs), alternative treatment centers (ATCs), and previous recipients of NJEDA’s Seed Equity or Joint Ventures grants are excluded from participation.
The NJEDA Cannabis Grant reimburses eligible expenses incurred within the 36 months prior to application. Qualifying costs include:
Commercial rent and maintenance charges under a valid lease.
Payroll expenses for employees or contractors.
Training and professional services, such as legal, accounting, security, marketing, branding, HR, transportation, and website development.
Expenses like construction, inventory, penalties, and large equipment purchases over $2,000 are not eligible. All claims must be verified through invoices, proof of payment, and detailed descriptions of services.
Applications for the NJEDA Cannabis Grant will be accepted online on a rolling basis, reviewed in the order they are received, and remain open until all funds are distributed or three years have passed. A $750 non-refundable fee is required with each application. Applicants must also provide supporting documentation, including their CRC license, business details, proof of expenses, and compliance certifications.
Approved applicants will enter a 24-month compliance period, during which their business must remain active and compliant. If a business closes or becomes non-compliant within the first year, NJEDA may recapture the full $75,000; within the second year, 50% may be recaptured.
By reducing financial barriers and prioritizing equity, the NJEDA Cannabis Grant is poised to strengthen New Jersey’s cannabis ecosystem empowering independent entrepreneurs to build sustainable, community-focused businesses in the Garden State.