In the increasingly competitive Massachusetts cannabis market, small businesses are struggling to keep up with large, well-capitalized corporations. One local entrepreneur, however, says a recent state grant may be the lifeline she needs to remain competitive. Caroline Pineau, owner of Stem in Haverhill, has been a passionate advocate for locally owned cannabis businesses since opening her doors—and this year, her work received a major boost.
Pineau was awarded a $500,000 social equity grant, the maximum available through the Massachusetts Cannabis Social Equity Trust Fund. For the Haverhill cannabis entrepreneur, the grant will fund major upgrades to her historic 1876 building, including installing an elevator, building a new stairwell, and creating a rooftop lounge in preparation for a future social consumption license.
“With market compression and instability in Massachusetts, this grant will be instrumental for our survival,” Pineau explained. “Haverhill cannabis businesses like mine face constant pressure from large companies with far more resources. We’re seeing mom-and-pop shops close every month—it’s a scary time.”
Local store owners share her concern. The state’s original medical marijuana program gave corporate operators an early advantage, and many small shops have struggled to keep pace. For Haverhill cannabis retailers, state grants can mean the difference between keeping their doors open and shutting down for good.
Pineau, one of Massachusetts’ first economic empowerment license holders, acknowledges that the $500,000 covers only part of her planned $1.5–$2 million renovation.
The trust fund supporting Pineau saw significant growth over the past year. More than $29 million in new funding was added, and $26.5 million in grants went to 181 small businesses—over ten times the amount distributed during the program’s first cycle in fiscal year 2024. For Haverhill cannabis operators, this surge in funding signals that the state is taking equity and market fairness seriously.
A legislative report revealed that the fund began fiscal 2025 with $27.3 million, received another $29 million from the Marijuana Regulation Fund in April, and ended the year with $29.6 million still available for future grants. Created in 2022, the fund aims to remove barriers for cannabis entrepreneurs—particularly women, people of color, and those impacted by past marijuana prohibition.
For Pineau, the possibility of additional funding rounds over the next five years offers hope. She says her Haverhill cannabis shop is ready to “hit the ground running” as soon as regulations for social consumption establishments are finalized.