Westword reports
Colorado is launching a state-funded loan program for marijuana business owners, one of the first of its kind in the country, according to Governor Jared Polis.
Part of the state’s Cannabis Business Office, the new Cannabis Business Loan Program will offer loans ranging from $50,000 to $150,000 for “renovations or expansions, the purchase of equipment, real estate or use as working capital” to established marijuana businesses in Colorado that meet the state’s social equity requirements. The loans will have “favorable and manageable terms,” according to an announcement from Polis’s office, with an estimated 239 jobs created or retained as a result.
“This landmark loan program will create and retain good-paying jobs and promote equity in the cannabis industry by providing growing businesses access to funding. I am committed to saving small businesses money and ensuring our state remains a great place to start and run a business in every industry. Thank you to NuProject for partnering with Colorado on this exciting milestone and working to support innovation in Colorado’s cannabis industry,” Polis says in a statement.
Despite being the first state in the nation to allow recreational pot sales, Colorado has been criticized for not having social equity programs in place earlier for individuals and communities impacted by the drug war. Because the plant is still federally prohibited, small-business owners often struggle to secure lines of credit, loans and other financial services from banks and credit unions. Created in 2021 and financed by state marijuana tax revenue, the Cannabis Business Office has about $1 million allocated for grants and $2.5 million for low-interest micro-loans, according to program manager Tristan Watkins.
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Cannabis Business Office
The Cannabis Business Office (CBO) creates new economic development opportunities, local job creation, and community growth for the diverse population across Colorado. Under the leadership of Governor Polis, we strive to expand economic prosperity within historically economically distressed areas throughout the state.
The office will offer technical assistance and access to capital that is otherwise unavailable at the federal level. While businesses that work with hemp and CBD have access to these resources, the CBO will provide these resources specifically to Marijuana Enforcement Division-licensed THC-touching companies. Technical assistance will include webinars, training modules, personalized one-on-one consulting, and other support. Access to capital will be offered in the form of microloans and grants for qualified applicants.
The Cannabis Business Office is a newly created office from Senate Bill 21-111 and funded by the Marijuana Tax Cash Fund. The office will work to create new economic development opportunities, local job creation and community growth for the diverse population of Colorado.
As we develop programming for the Cannabis Business Office, we want to hear from partners and potential clients so we can better serve the needs of our community. Please use the forms below whether you want to support the CBO as a partner, or utilize CBO programming.
I am interested in applying for future CBO assistance
Social equity as a priority
The office will prioritize programming for social equity licensees. To be eligible for a social equity license, applicants must qualify one of the following:
- resided for at least 15 years between 1980 and 2010 in a census tract designated by OEDIT as an Opportunity Zone or designated as a “Disproportionate Impacted Area”
- applicant or applicant’s parent, legal guardian, sibling, spouse, child, or minor in their guardianship was arrested for a marijuana offense, convicted of a marijuana offense, or was subject to civil asset forfeiture related to a marijuana investigation
- household income in a year prior to application did not exceed 50% of the state median income as measured by the number of people who reside in the applicant’s household
For more information about social equity licenses, please read the eligibility requirements.
Cannabis Business Programs and Funding
Cannabis Business Technical Assistance
Technical assistance provides webinars, workshops, and access to educational materials to help business owners improve their operations. Topics include business fundamentals and specific needs for the cannabis industry.
Cannabis Business Grant
The office will provide access to funding opportunities in the form of grants, to be used to support seed capital, ongoing business expenses, innovation, and job creation.
Resources for cannabis businesses
Two critical needs that cannabis entrepreneurs face include cannabis banking options and pro bono legal resources.
Cannabis Business Consulting
Qualified consultants with decades of combined experience will be available to guide businesses through their foundational steps, a rapid growth stage, or a need to increase operational efficiencies.
Cannabis Business Loan
High dollar loans for growth-oriented, social equity owned cannabis businesses will provide access to capital for seed funding, ongoing business expenses, improvement projects, and more to support business expansion and improve operations.
Contact the Program Manager
