The New Jersey Economic Development Authority (NJEDA) Board has approved a new initiative aimed at supporting recreational cannabis entrepreneurs in the state. The Cannabis Business Development (CBD) Grant Program, announced on May 13, 2025, will provide $5 million in financial assistance to eligible businesses through one-time reimbursements of $75,000. These funds are intended to help manage compliance and operating costs for early-stage companies.
This grant is funded by cannabis sales tax revenue as outlined in the FY25 State Appropriations Act. It represents NJEDA's third equity initiative within the cannabis sector, emphasizing the state's dedication to fostering an inclusive and sustainable industry.
“Under Governor Murphy’s leadership, New Jersey is setting the national standard for building an equitable, innovation-driven cannabis industry,” stated Tim Sullivan, NJEDA Chief Executive Officer. “This grant is a strategic investment in small business growth, job creation, and long-term industry success—driving capital to operators already rooted in our economy and committed to growing here.”
The CBD Grant Program builds upon previous initiatives like the Seed Equity and Joint Ventures Grant Programs which have facilitated nearly $14 million in support for 40 cannabis businesses across New Jersey. This new program shifts focus towards reimbursing operational costs for businesses that have moved beyond their initial capital-intensive phase.
Eligible applicants must possess a valid NJ Cannabis Regulatory Commission (NJCRC) annual license or digital card under specific categories such as Cultivator, Manufacturer, Retailer, or Testing Laboratory. Multi-State Operators (MSOs) and transitional Alternative Treatment Centers (ATCs) are excluded from applying to ensure funding reaches small businesses historically lacking access to capital.
“Centering equity in cannabis economic development means ensuring that capital flows to the local entrepreneurs who need it most,” said Tai Cooper, NJEDA Chief Community Development Officer. “By excluding MSOs and ATCs, this program prioritizes small independent operators who are investing in New Jersey’s future — creating jobs, generating local wealth, and laying the groundwork for a more inclusive and competitive industry statewide.”
A portion of funding is reserved for Impact Zones designated by the NJCRC. These areas are identified based on factors such as past cannabis-related arrests and socioeconomic challenges.
“This grant program is another tool to expand opportunity for diverse cannabis entrepreneurs and to further the vision of an equitable marketplace,” said Dianna Houenou, Chair of the NJCRC. She emphasized ongoing collaboration with NJEDA in supporting community-rooted businesses.
Further details about the CBD Grant Program will be provided soon through NJEDA's website and social media channels.
