NJ Offers ‘Re-Leaf’ To Cash-Strapped Marijuana Businesses With $15M Loan Program

New Jersey will be giving out $15 million in loans to companies that grow cannabis, manufacture marijuana products or run testing labs, state officials recently announced.

The New Jersey Economic Development Authority (NJEDA) board has approved a new, $15 million pilot program that aims to level the playing field for companies that lack the funds to expand.

The New Jersey Lending for Equity, Access and Financing (NJ LEAF) program will provide low-cost financing to eligible cannabis companies. Fixed asset loan amounts will range from $100,000 to a maximum of $1.5 million, and working capital support loans will extend from $100,000 to a maximum of $500,000.

The money can be spent on property investments, equipment upgrades or day-to-day operating expenses.

Here’s how the program works, according to the NJEDA:

“Eligible businesses must hold a valid and current recreational Class 1- Cannabis Cultivator, Class 2 - Cannabis Manufacturer, or Testing Laboratory annual license digital card issued by the New Jersey Cannabis Regulatory Commission (NJCRC). In addition, businesses must be based in New Jersey, employ fewer than 250 full-time employees, and must have been in operation for at least one calendar year with annual gross revenues of $5 million or less. In line with Gov. Phil Murphy’s efforts to foster an equitable cannabis industry, five percent of funding under the program will be set aside for businesses located in Impact Zones, which are areas designated by statute that were disproportionately impacted by cannabis prohibition or meet other statutory criteria.”

For more information on eligibility and funding uses, email businessbanking@njeda.gov or visit www.njeda.gov/nj-leaf

“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,” NJEDA chief executive officer Tim Sullivan said.

New Jersey’s cannabis industry has been booming since the state’s voters legalized recreational marijuana in 2020.

Since the start of adult-use cannabis sales in April 2022, the state’s legal marijuana market has generated more than $2 billion in total revenue, the NJCRC reported in January.

A total of $6,140,461 has been collected over that time period in “social equity fees” to support education, economic development and social services for people and communities negatively impacted by cannabis criminalization.

>> Read More: $1 Billion In Weed: NJ Cannabis Industry Sees Record-Setting Year

Shortages of cannabis have periodically hampered the industry’s expansion and sparked concerns among medical users, who retain priority at New Jersey’s dispensaries.

• See Related: NJ Marijuana Patients Need Lower Prices, More Weed: NJDOH
• See Related: Flaw In NJ Marijuana Law Is Jacking Up Prices, Expert Says
• See Related: New Jersey Clears Way For State’s First ‘Cannabis Lounges’ (See Locations)
• See Related: The ‘Grass Ceiling’: NJ Legal Weed Industry Needs More Women (Op-Ed)
• See Related: NJ Weed Businesses Don’t Hurt Home Values – And May Even Help, Study Finds

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.