Colorado Gov. Jared Polis announced Monday the launch of a new state-funded loan program for cannabis social equity businesses.
This new program is designed to fund licensed and socially equitable cannabis businesses that typically face difficulties in raising the capital they need to start and grow their businesses. The initiative is managed by the State Cannabis Business Office (CBO) within the Colorado Office of Economic Development and International Trade (OEDIT) in partnership with NuProject, a Portland, Oregon-based organization, to promote the Legal Cannabis Industry. Building Generational Wealth Through “For Black and Brown Communities Disproportionately Damaged by the War on Drugs” According to the group’s website.
“This landmark lending program promotes equity in the cannabis industry by creating and retaining 239 high-paying jobs and providing access to funding for growing companies.” polis he said “I am committed to saving money for small businesses and ensuring our state remains the best place to start and operate a business in any industry,” said a statement from the Governor’s Office Monday afternoon. We thank NuProject for partnering with Colorado on this exciting milestone and working to help innovate Colorado’s cannabis industry.”
Cannabis and Capital in Colorado
Cannabis companies have historically faced funding issues due to a variety of factors, including federal banking regulations and the ongoing stigma associated with marijuana and cannabis users. It can be particularly challenging for social equity business owners, who often face additional obstacles such as generational economic marginalization.
To address these challenges, the Colorado Cannabis Business Loan Program offers low-interest loans ranging from $50,000 to $150,000 to social equity cannabis businesses to finance renovations, expansions, equipment and real estate. Provide funds for purchase or for use as working capital.
The governor’s office notes that NuProject has a track record of financing cannabis businesses that specialize in mission-based and character-based financing. The practice of non-profit organizations is that entrepreneurs have limited cash flow, lack the traditional assets needed to secure loans, or experience other challenges in obtaining loans. But it will help you get the loan. NuProject also provides mentorship and educational resources to prepare business owners to complete their loan applications.
“NuProject will change the typical funding stream to give small business owners in the cannabis industry, especially those historically excluded from access to capital, access to the resources they need to grow their businesses. We are working on making it accessible,” said Janet, CEO of NuProject Ward Horton. “When cannabis business owners have access to financial support and the know-how to put their money to good use, they have the opportunity to run better businesses and build intergenerational wealth through the cannabis industry. “
NuProject and CBO will manage the cannabis business loan program as a revolving loan fund. As loans to business owners are repaid, the interest accrued is reinvested into the fund to support future borrowers. His $1 million initial state investment is expected to lend him $2.9 million over the next 10 years, creating and retaining jobs in Colorado, according to state officials.
The Cannabis Business Loan Program is the third source of CBO funding available to licensed social equity cannabis businesses in Colorado and is designed to support large, established cannabis businesses that continue to grow. Launching in 2021, the Cannabis Business Grant provides a $25,000 base grant to help early-stage cannabis businesses with the costs of starting a business, and for existing cannabis businesses to expand or improve their operations. We will provide a $50,000 growth grant to support you in doing so.
“Colorado’s Cannabis Business Loan Program is at the forefront of the cannabis industry, creating a new model that allows these small business owners to access the resources they need to grow and thrive.” said Eve Liberman, Executive Director of OEDIT. “Together with NuProject, the Cannabis Business Office is enabling the cannabis business to grow, create new jobs, and contribute to a working Colorado economy for everyone.”
Activists Seek More Support for Social Equity Businesses
Cannabis social equity advocate and business owner Sarah Woodson welcomes Colorado’s new loan program for eligible businesses in the industry. We want to keep the public up-to-date about
“It will be interesting to see what happened with the money handed out so far.” Woodson said Westward. “I don’t think many of those businesses are open yet.”
Woodson is calling on Colorado legislators to pass Bill 1020 to allow socially equitable cannabis businesses to deliver directly to consumers without partnering with licensed dispensaries. The bill has been pending him in Congress for more than three months, but so far, he has had only two public hearings. Woodson said the bill has been delayed by opposition from the established cannabis industry and lack of funding. According to the bill’s financial memo, it will cost just over $360,000 to create the new licensing system needed to implement the law.
“I need about $370,000 to get the bills through, but I can’t find it,” she said.
Woodson said he is preparing a public records request to find out how much of the previous funds were spent. If funds remain, she wants her CBO to cover the cost of implementing House Bill 1020.
“If you have more than $2 million left, $370,000 shouldn’t be a problem,” she said. “If it’s under $1 million, that’s another matter.”
“The natural link is the CBO’s office, but we want to respect their plans. We just want to know the remaining amount and it’s not very clear,” she added. seeks less than $370,000 for existing businesses to survive, many of which were started by CBOs Social equity is one of the governor’s very important goals need to do it.”