SBS, NYCEDC Announce Launch of Applications for Cannabis NYC Loan Fund - SBS

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FOR IMMEDIATE RELEASE
October 8, 2024

SBS, NYCEDC ANNOUNCE LAUNCH OF APPLICATIONS FOR CANNABIS NYC LOAN FUND

Loan Fund Adds to Growing Suite of Resources, Services to Ensure New York City's Place as Legal Cannabis Capital of the World

Loans of up to $100,000 will be Available to CAURD Licensees

Loan Fund Launches as City Ramps Up Efforts to Connect Cannabis Entrepreneurs with Staffing, Retail Space

NEW YORK – Today, New York City Department of Small Business Services (SBS) Commissioner Dynishal Gross, New York City Economic Development Corporation (NYCEDC) President Andrew Kimball, and Cannabis NYC Founding Director Dasheeda Dawson announced that applications are open for the first phase of the Cannabis NYC Loan Fund. The fund, administered by the cannabis-focused private equity firm Tuatara Capital is now open to applications from Conditional Adult-Use Retail Dispensaries (CAURD) licensees, who will have access to an initial deployment of $2 million in funding. The fund will provide affordable and flexible capital to early-stage cannabis businesses to promote the development of an equitable cannabis industry in New York City. Tuatara Capital brings nearly a decade of experience working exclusively in the cannabis industry with a proven track record of success, managing approximately $400 million in committed capital.

Loans of up to $100,000 will be provided to CAURD licensees to be used for start-up and ongoing operating expenses. Unlike other loan funds, the Cannabis NYC Loan Fund includes unrestricted use for business expenses, with an emphasis on flexibility for borrowers; loan terms of up to three years, and interest rates capped at 9.5 percent. Interested parties must apply through the Loan Fund website.

"The legalization of cannabis has allowed a new economy to emerge in New York state while addressing the harmful impact of the 'War on Drugs' on Black and Brown New Yorkers," said New York City Mayor Eric Adams. "But, for too long, the intended beneficiaries of the new market have not been given the resources they need to truly succeed. That is why our administration has been laser focused on creating an environment where legal businesses are able to thrive. With the launch of the 'Cannabis NYC Loan Fund,' we are giving up to $2 million in capital directly to the entrepreneurs who need it and reducing the hurdles to establishing a thriving business. Together, with our successful 'Operation Padlock to Protect' effort — which has already closed over 1,200 illegal cannabis shops — and our numerous programs to support legal operators through Cannabis NYC, we are carving a bright path for legal cannabis businesses in New York City."

"The Cannabis Loan Fund represents yet another innovative program that this administration has created to build one of NYC's emerging industries," said First Deputy Mayor Maria Torres-Springer. "We are excited to provide cannabis entrepreneurs with flexible, low-cost capital that will enable them to contribute and compete in the industry and New York City's vibrant, inclusive economy."

"Access to affordable capital is one of the biggest hurdles to success for small businesses across sectors," said SBS Commissioner Dynishal Gross. "This barrier is especially daunting for justice-involved individuals entering the legal cannabis market. The opening of the Cannabis NYC Loan Fund is a tangible expression of SBS's commitment to creating equity of opportunity for cannabis entrepreneurs and others. I thank Founding Director Dasheeda Dawson and NYCEDC President Andrew Kimball for their hard work in making this possible."

"The kick-off of the Cannabis NYC Loan Fund's Phase One marks another milestone in our work to help these growing small businesses raise capital so that they can thrive in the five boroughs, and continue to build a stronger, more equitable economy," said NYCEDC President & CEO Andrew Kimball. "NYCEDC is grateful to our partners at SBS, and fund administer Tuatara Capital, for bringing this first-of-its-kind fund to life."

"As we open the first phase of the Cannabis NYC Loan Fund, we take another step towards justice and opportunity for those most harmed from previous criminalization," said Cannabis NYC Founding Director Dasheeda Dawson. "New York City's historic investment empowers justice-impacted entrepreneurs and begins to dismantle the barriers to accessing capital in the legal cannabis industry. All of our work to date is cultivating equitable growth of our developing market and also setting a powerful example for other jurisdictions in the United States and abroad."

The Cannabis NYC Loan Fund adds to the growing list of resources that the Adams administration has made available to entrepreneurs in the field. In addition to shuttering over 1,000 dangerous and unlicensed cannabis shops as part of the administration's "Operation Padlock to Protect," SBS and Cannabis NYC offer:

NYC LEASE, an initiative designed to connect landlords of vacant commercial storefronts with licensed cannabis entrepreneurs seeking viable commercial spaces to operate dispensaries. The temporary program will also provide education about New York State cannabis regulations, and SBS's Commercial Lease Assistance (CLA) program to landlords and CAURD licensees. The first NYC LEASE networking event will be on Wednesday, October 9. Interested attendees must register in advance here;

Cannabis Reentry Employment Assistance and Training Experience (CREATE), the city's pioneering pilot initiative for cannabis workforce development. A partnership between the Mayor's Office for Criminal Justice (MOCJ) and Cannabis NYC, CREATE provides individuals recently released from incarceration with the necessary job-readiness skills to thrive as retail dispensary associates in the rapidly expanding legal adult-use cannabis industry. The next CREATE cohorts begin on November 4, 2024, and December 2, 2024. Applications are open on the MOCJ website;

FastTrac® for Cannabis Entrepreneurs, a free educational program that connects cannabis business owners with high-quality training and advice proctored by leading players in the legal cannabis industry. Access to the program is available to both ancillary and licensed cannabis entrepreneurs at all stages of the startup and licensing process and is presented virtually as a 10-session, 30-hour series of online courses. Since its launch, FastTrac® for Cannabis Entrepreneurs has registered more than 400 participants with 125 graduates. Cohorts begin every six weeks, with those interested encouraged to apply here;

Cannabis Account Managers through SBS's NYC Business Solutions Centers, which offer free services in all five boroughs including business courses, consultations, financing assistance, legal assistance, hiring assistance, government navigation, compliance consultations, and Minority- and Women-owned Business Enterprise (M/WBE) Certification.

The Cannabis NYC Loan Fund's first phase application will be open through November 4, 2024. Phase two is expected to launch in spring of 2025 with at least $6 million available for funding. Phase two aims to expand the fund's size through additional capital partners with a goal of financing early-stage and more mature licensed cannabis businesses across all license types, with CAURD licensees still prioritized.

"The CREATE initiative provides justice-impacted individuals with pathways to gainful employment in the city's burgeoning legal cannabis industry. We are proud to work with Cannabis NYC to implement this innovative initiative," said MOCJ Director Deanna Logan. "CREATE exemplifies the positive impacts of cross-industry collaboration and contributes to our city's economic vibrancy. We are grateful for the Adams administration's leadership as we continue to invest in public safety through cutting-edge methods that build equity for all."

"New York understands that extending financial resources to help small business thrive is a crucial part of ensuring social equity in the cannabis marketplace, said Felicia A.B. Reid, Acting Executive Director of the New York State Office of Cannabis Management. "The Cannabis NYC Loan Fund is an exciting and necessary resource that gives CAURD licensees the ability to invest in their growth, better navigate their operational needs, and deepen their market and community impacts."

"The 2021 MRTA envisioned a thriving, equity-centered cannabis industry where those most harmed by prohibition could benefit economically and build generational wealth," said New York State Assembly Majority Leader Crystal Peoples-Stokes. "Access to capital remains a significant hurdle for many CAURD licensees. The Cannabis NYC Loan Fund is a crucial step in the right direction, providing flexible financing to help under-resourced operators get their businesses off the ground. New York City's investment in equitable cannabis entrepreneurship will foster innovation, create jobs, and empower communities. I'm confident it will serve as a model for other cities and states to follow."

"The Cannabis NYC Loan Fund is a great opportunity for Queens cannabis small business owners who are diligently following the law to grow the enterprise and help create a booming new economic industry," said Queens Borough President Donovan Richards Jr. "I encourage local, small-scale cannabis entrepreneurs take advantage of this landmark initiative in the months to come, as we work to empower those who have been historically targeted by our criminal justice system in the past."

"The Cannabis NYC Loan Fund is a vital step toward building an equitable and thriving cannabis market in New York City, ensuring that Black, Brown, and all minority entrepreneurs have access to the resources they need to succeed," said New York City Council Member Kevin C. Riley. "By empowering communities disproportionately impacted by cannabis-related laws, we're creating a supported, competitive, and well-regulated market where licensed dispensaries can thrive, reducing the demand for illegal operations. With financial support for startup and operational costs, legal businesses are better positioned to meet consumer demand with quality products, driving economic growth and community safety. I'm proud to stand with SBS and EDC in building a safe and inclusive cannabis ecosystem."

"The legalization of cannabis in New York State was a sincere effort to rectify years of disproportionate punishment for marijuana-related offenses," said New York City Council Member Carlina Rivera. "We must support legal vendors who operate within a framework that protects public health and safety, and who are genuinely committed to equity and justice in their business model. As access to capital remains a significant barrier to opening a dispensary, I commend Cannabis NYC for launching a loan fund and their continued support for local entrepreneurs."

"Tuatara is excited to support New York City in the launch of the Cannabis NYC Loan Fund," said Al Foreman, L.P. Partner, Tuatara Capital. "Over the last few months our teams have been working in partnership to arrange the right people, processes, and technology needed for the opening of the Cannabis NYC Loan Fund application window. We look forward to reviewing the pool of prospective applicants and to having the opportunity to help facilitate funding to qualified borrowers in support of an equitable NYC cannabis industry."

About NYCEDC
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city's future economy. To learn more about what we do, visit us on Facebook, Twitter, LinkedIn, and Instagram.

About Cannabis NYC
The NYC Department of Small Business Services (SBS) launched Cannabis NYC to make our city the global leader for cannabis industry excellence in education and equity across business, science, and culture, and is reaching this goal by actively creating an interagency hub of free resources and services for all New Yorkers interested in the cannabis industry. Through strategic outreach, public engagement, business services, and advocacy efforts, Cannabis NYC supports the creation of good jobs, successful small businesses, and sustainable economic opportunity to address historic harms of past cannabis prohibition. To stay connected, visit nyc.gov/cannabis and sign up for updates here.

About the NYC Department of Small Business Services (SBS)
SBS helps unlock economic potential and create economic security for all New Yorkers by connecting New Yorkers to good jobs, creating stronger businesses, and building vibrant neighborhoods across the five boroughs. For more information on all SBS services, go to nyc.gov/sbs, call 888-SBS-4NYC, and follow us on Facebook, Twitter, Instagram, and LinkedIn.