Pritzker to award $5.5 million in social equity cannabis loans
Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced the recipients of $5.5 million in loans through Round II of the Cannabis Social Equity Loan Program. Through the program, 23 qualified licensed social equity dispensaries are set to receive $240,000 Direct Forgivable Loans (DFL) financed by the State of Illinois.
The announcement states, “After providing approximately $22 million through Round I of the Cannabis Social Equity Loan Program to craft growers, infusers, and transporters, DCEO opened Round II for adult-use dispensaries. Loan recipients are social equity Conditional and Adult Use Dispensing Organizations licensed by the Illinois Department of Finance and Professional Regulation (IDFPR). This round of funding was open to dispensaries who received licenses prior to the July 2023 dispensary license lottery.”’
Applicants were selected based on factors including social equity status, financial need, financial resources, and progress toward becoming operational. The loan principal is 100% forgivable upon providing documentation for eligible business expenses. The Cannabis Social Equity Loan Program is a first-of-its-kind program that was launched with the goal of providing loans to social equity licensees. Through loans made available by DCEO, 33 craft growers, infusers, and transporters were provided approximately $22 million in loans in Round I. 80% of the Round I loans were awarded to Minority and Women-Owned Business (M/WBE) firms, with approximately 84% of the loan amount shares going to M/WBE firms.
Quotes from politicians and steakholders:
“Since day one, my administration has put equity at the forefront of building the most accessible cannabis industry in the nation,” said Governor JB Pritzker. “With the Cannabis Social Equity Loan Program, we’re giving social equity licensees the resources they need to grow their businesses – righting decades of injustice while providing opportunities for economic success in our state’s historically disinvested communities.”
“The Cannabis Social Equity Loan Program is actively reshaping the cannabis industry by strengthening businesses, creating jobs, and boosting economic growth,” said Lt. Governor Juliana Stratton. “However, the impact of these investments goes beyond business development. We are demonstrating a tangible commitment to equity, removing barriers and promoting inclusivity in the cannabis sector.”
“Licensed social equity cannabis dispensaries throughout the state are now benefitting from loans offered by the State of Illinois,” said DCEO Director Kristin Richards. “This Direct Forgivable Loan Program is the latest of a variety of programs designed to promote equity in Illinois’ growing cannabis industry.”
“As part of the Pritzker Administration, we are committed to reducing barriers and ensuring people from all backgrounds – and all of Illinois – have the opportunity to join the most equitable cannabis industry in the country,” said Cannabis Regulation Oversight Officer Erin Johnson. “Today’s announcement means critical funding for dispensaries and applicants across the state to open their businesses and create a stronger cannabis industry, meaning a stronger economy for Illinois.”
“Social equity dispensaries have a real opportunity to succeed in our state by benefitting from this Direct Forgivable Loan program,” said Senate Majority Leader Kimberly A. Lightford (D-Chicago). “The State of Illinois is committed to reducing barriers to entry into the cannabis industry and supporting communities that have historically suffered from disinvestment.”
“Illinois is paving the way by prioritizing equity through its cannabis industry loan programs,” said Representative La Shawn Ford (D-Chicago). “The latest round of the Cannabis Social Equity Loan Program is providing critical support to social equity dispensaries across Illinois.”
For more Illinois cannabis industry news, subscribe to Illinois News Joint’s newsletter here.
To find cannabis-friendly events in Illinois, visit here.
For Illinois News Joint reviews, visit here.
For more information on News Joint Bar Service, visit here.
For News Joint Printing services, click here.
