As social equity applicants continue to apply for the coming round of cannabis dispensary licenses, the state of Illinois this week opened applications for the first $21 million Low Cost Loan Program that was authorized in the cannabis law signed in June.

The initiative is funded through the Cannabis Business Development Fund, created by the Cannabis Regulation and Tax Act, to support social equity applicants seeking cannabis business licenses.

The fund is primarily supported through the licensing fees of the first round of dispensaries and cultivators, among other sources. As additional early use licenses for dispensaries and cultivators are awarded, the available funds for loans are expected to surpass $30 million.

In a state news release, Gov. JB Pritzker said social equity applicants will have access to low-interest loans and the technical assistance they need to get their business off the ground in this new industry, and he encourages people to apply.

Toi Hutchinson, senior advisor to the Governor for Cannabis Control said that Illinois has had, for the past five years, “a homogenous cannabis industry,” and it takes a tremendous amount of effort and diligence to turn it around in a constitutional way.

Applications for the loans are available here.

Initially, social equity applicants for the conditional adult use dispensing organization license will be able to apply for a loan.  As the license application periods open for craft grower and infuser licenses in January 2020, those social equity applicants will be able to apply to the loan program as well.

The low-interest loans will be available to those applying for a license to operate a cannabis business that meet the following criteria as set forth in the Cannabis Regulation and Tax Act:

• 

  This map  shows the Disproportionately Impacted Areas in blue. To determine if an address is located in a Disproportionately Impacted Area, click this link to see the map and enter the address in the search box.

  Has at least 51% ownership and control by one or more Illinois residents who:

  • Have lived in a Disproportionately Impacted Area in 5 of the past 10 years.  Disproportionately Impacted Areas are census tracts that have high rates of arrest and incarceration related to cannabis offenses, among other qualifications including high poverty and unemployment. A map of these areas is available here.
  • Have been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including cannabis possession up to 500 grams or intent to deliver up to 30 grams.
  • Have a parent, child, or spouse that has been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including possession up to 500 grams or intent to deliver up to 30 grams.
• Has more than 10 full-time employees, and more than half of those employees:
  • Currently reside in a Disproportionately Impacted Area.
  • Have been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including cannabis possession up to 500 grams or intent to deliver up to 30 grams.
  • Have a parent, child, or spouse that has been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including possession up to 500 grams or intent to deliver up to 30 grams.

In addition to the above, other criteria will be considered for qualification for a loan, including business plans, financial details, operational and compliance information, and need.

While the interest rates for all loans will be below market rate, the specific rate, size and duration of each loan will be determined on a case-by-case basis. Successful applicants will receive pre-approval for a Cannabis Social Equity Loan, conditional on receipt of a license.

In addition to releasing the application for low interest loans for social equity applicants for cannabis licenses, DCEO is continuing to partner with the Community Enterprise and Solidarity Economy Clinic at the John Marshall Law School to offer technical assistance.

Through this partnership, social equity applicants are receiving additional help with understanding licensing requirements, preparing business, security, operational plans and other important elements of running a cannabis business. CESEC has already conducted multiple community workshops across the state to educate potential social equity applicants on the cannabis industry.

The following cannabis workshops are planned in the coming days:

• East St. Louis Community College Center – 655 James R. Thompson Blvd, East St. Louis
  • Wednesday, Dec.18, 2019 | 5 – 7:30pm
  • RSVP HERE.
• George Washington Carver Community Center – 710 Percy Baker Drive, Peoria
  • Thursday, Dec. 19, 2019 | 1 – 5pm
  • RSVP HERE.
• Mi Tierra Restaurant, 2528 S. Kedzie Ave., Chicago
  • Friday, Dec.20, 2019 | 10am – 12pm
  • RSVP HERE.

For more information, including a map of Disproportionately Impacted Areas, visit DCEO’s cannabis equity webpage: https://www2.illinois.gov/dceo/Pages/CannabisEquity.aspx

SOURCE: state of Illinois news release