NYC Cannabis Loan Fund is Now Accepting Applications from New York Cannabis Entrepreneurs
By Brandon Kurtzman, Bridgette Nikisher
Oct 31, 2024
Earlier this month, the New York City Department of Small Business Services (“SBS”), New York City Economic Development Corporation (“NYCEDC”), and Cannabis NYC announced that applications are now open for the first phase of the Cannabis NYC Loan Fund (the “Fund”). This Fund is designed to provide loans to cannabis entrepreneurs to promote equity within the industry. The Fund is administered by cannabis-focused private equity firm Tuatara Capital.
The first phase of the Fund has $2 million to support Conditional Adult-Use Retail Dispensary (“CAURD”) licensees. In this first phase, CAURD licensees located in NYC can apply for loans of up to $100,000 that can be used for start-up or operational expenses, with limited restrictions. Awardees can use their funds for startup expenses, business expansion, refinancing, equipment, commercial tenant improvements, or working capital.
Loan sizes will be determined by the applicant’s demonstrated ability to pay back the loan. Awardees who demonstrate financial growth and stability will be eligible for larger loans over time.
The application is free, but approved applicants will pay a 1.5% fee upon closing. Applications for the first phase will be accepted through the Loan Fund’s website until November 4, 2024.
Important info about the loans:
- First phase interest rates are a fixed rate of 9.5%
- Loan terms of up to three years are available. In the first six months, awardees will make interest-only repayments
- Prepayment is permitted without penalty
- There is no minimum credit score requirement to apply
Required Documents for Application:
- Personal and Business Tax Returns
- Profit and Loss Statements
- Balance Sheet
- Cash Flow Statement
- Proof of Residential and Business Address
- Verification of Business Bank Account - current statement
- Articles of Incorporation/Organization
- Bylaws
- EIN Certificate
- Business Plan: A written plan and a presentation will be required
- 6 months of bank account statements
- 12-month Cash Flow Projections
- Sources and Uses of Funds
- Resume
- Government Issued Identification
SBS, NYCEDC, and Cannabis NYC expect to launch the second phase in the spring of 2025. They anticipate the second phase will have at least $6 million of funding available for other license types, while still prioritizing CAURD licensees. Awardees from the first phase will be eligible to apply in the second phase as well.
As a reminder, the SBS and Cannabis NYC also offer:
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NYC LEASE, an initiative connecting landlords of vacant commercial storefronts with licensees seeking property
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Cannabis Reentry Employment Assistance and Training Experience (CREATE), a cannabis workforce development initiative providing individuals who have been released from incarceration with job-readiness skills. The next CREATE cohort begins on November 4, 2024. Applications are accepted via the MOCJ website
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FastTrac® for Cannabis Entrepreneurs, a free program connecting licensees and ancillary providers with training proctored by leaders in the legal cannabis industry. Cohorts begin every six weeks. Applications are accepted on the city’s website
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SBS's NYC Business Solutions Centers’ Cannabis Account Managers, offering business courses, consultations, financing assistance, legal assistance, hiring assistance, government navigation, compliance consultations, and Minority- and Women-owned Business Enterprise (M/WBE) Certification
Need assistance with your application? Vicente’s New York team is here to help! Contact us at 917-338-5455 or newyork@vicentellp.com.
If you are looking to enter or expand your business in the New York market, Vicente’s team can assist with corporate law, market analysis, real estate, licensing, compliance, and more. Reach out to our New York team.
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