The New Jersey Economic Development Authority (NJEDA) Board has approved a $15 million pilot loan program aimed at strengthening the state's cannabis supply chain. The initiative, known as the New Jersey Lending for Equity, Access, and Financing (NJ LEAF) Program, is designed to provide low-cost financing of up to $1.5 million for eligible recreational cannabis cultivators, manufacturers, and testing laboratories.
According to NJEDA Chief Executive Officer Tim Sullivan, "Under Governor Phil Murphy’s leadership, New Jersey is building an equitable cannabis market by supporting every link in the supply chain. NJ LEAF will ensure companies that are cut off from traditional financial resources have access to the capital needed to succeed, helping to create jobs, strengthen communities, and solidify New Jersey’s long-term growth as a national leader in the cannabis market."
The NJ LEAF Program offers flexible lending options for both fixed assets and working capital. Fixed asset loans will range from $100,000 up to $1.5 million while working capital loans will be available from $100,000 up to $500,000. These funds are intended for investments such as property purchases, equipment upgrades, and operational expenses.
NJEDA Chief Community Development Officer Tai Cooper stated, "NJ LEAF will build upon the NJEDA’s already successful efforts to support the state’s burgeoning cannabis industry. New Jersey’s continued investment into this strategic sector is unlocking much-needed resources for diverse entrepreneurs, helping create jobs and strengthen communities."
To qualify for funding under NJ LEAF, businesses must hold a valid recreational Class 1-Cannabis Cultivator, Class 2–Cannabis Manufacturer or Testing Laboratory annual license digital card issued by the New Jersey Cannabis Regulatory Commission (NJCRC). They must also be based in New Jersey with fewer than 250 full-time employees and have operated for at least one year with annual gross revenues of $5 million or less. Five percent of funding is reserved for businesses located in Impact Zones—areas disproportionately affected by previous cannabis prohibition or meeting other statutory criteria. More details about eligibility can be found on the NJEDA website.
NJCRC Chairwoman Dianna Houenou commented on the program's significance: "It has been heartening to see the NJEDA’s commitment to financially supporting New Jersey’s cannabis entrepreneurs. Our applicants and operators face obstacles that are unique to the industry without access to the financial tools available to other business owners. I am grateful that NJEDA with NJ LEAF and its grant programs are attempting to close that gap."
Earlier this year in May, NJEDA approved a separate $5 million Cannabis Business Development Grant Program targeting compliance costs and operating expenses for eligible entrepreneurs in the sector. These efforts follow earlier initiatives like Seed Equity and Joint Ventures Grant Programs which have collectively distributed nearly $14 million and supported around 40 new cannabis businesses statewide.
For further information about eligibility or application procedures for NJ LEAF loans or grants visit www.njeda.gov/nj-leaf or contact businessbanking@njeda.gov.
