BALTIMORE, MD (June 1, 2023) – The Maryland Department of Commerce has announced that applications are now being accepted for the first round of funding from the Cannabis Business Assistance Fund. This fund, which will provide both grants and loans, aims to enhance the capacity of small businesses and entrepreneurs to participate in Maryland’s adult-use cannabis industry.
Governor Wes Moore supported the Cannabis Business Assistance Fund: “The fund promotes equitable economic growth and will empower our small, minority, and women-owned businesses to have a greater stake in this growing industry.” The goal is to ensure a more level playing field as medical cannabis license holders transition to recreational marijuana use in Maryland.
The initial round of assistance available through the fund is the Medical Cannabis License Conversion Fee Assistance grant. This grant will offer financial support to existing medical-use licensees to cover the costs of converting their licenses to adult-use licenses. Processors and growers can qualify for grants of up to $50,000, while dispensary licensees can receive grants of up to $25,000.
Priority consideration will be given to license owners in areas disproportionately affected by cannabis prohibition enforcement. To be eligible for the Medical Cannabis License Conversion Fee grant, a license holder must meet the following criteria: be a small business with 0-50 employees per license as of May 1, 2023, and have at least 51% of the business owners with a personal net worth not exceeding $1.7 million.
A second round of applications will open on August 1, focusing on providing resources to eligible social equity licensees who received stage one pre-approval before October 1, 2022. These resources will help them become operational and participate in both the medical and adult-use cannabis industry. Conditional grants or loans for startup capital and operating expenses will be available.
Applicants for the second round must demonstrate that the funding requested will enable them to become operational within a specific timeframe to be announced. Further details regarding the second round of applications will be released before August 1.
Subsequent funding rounds will be dedicated to Historically Black Colleges and Universities for cannabis-related programs, businesses applying for licenses, and business development organizations, including incubators. The funding will also support training and assistance for small businesses, particularly those owned by minorities and women, and entrepreneurs seeking licensure in the adult-use cannabis industry.
Maryland Department of Commerce Secretary Kevin Anderson highlighted the significance of the fund in reducing barriers and providing equitable opportunities for small, minority, and women-owned businesses in the medical cannabis sector. Secretary Anderson expressed enthusiasm about working with the business community and Historically Black Colleges and Universities to promote diversity in the industry.
Interested parties can submit applications on a rolling basis until June 30. For more information and to apply online, visit the Maryland Department of Commerce Cannabis Business Assistance Fund website. Any inquiries can be directed to cannabis.financing@maryland.gov.
