NEW YORK (420CanNews) — New York City is blazing a trail toward a more equitable cannabis industry as it announces the launch of its Cannabis NYC opportunity fund loan. This groundbreaking initiative, a joint effort between the New York City Economic Development Corporation (NYCEDC) and the NYC Department of Small Business Services (SBS), aims to cultivate participation in the industry by those unfairly impacted by cannabis criminalization. As the Big Apple takes a bite out of cannabis inequality, it’s time for industry private equity applicants and lenders to unite and sow the seeds for a prosperous, inclusive, and competitive economy, officials have said.
New York City officials have steadfastly committed to rectifying the inequalities brought about by misguided cannabis policies spanning decades. The NYC opportunity fund loan is poised to offer marketing cannabis businesses much-needed flexible capital.
The fund, aiming for $20-30 million, will get an initial $8 million from the city, and its final size will depend on private lenders’ response. Cannabis entrepreneurs will receive below-market capital from the fund to establish their facilities in the city. NYCEDC will provide up to $8 million in subordinated loans at 0% interest to attract more private capital and reduce interest rates for borrowers. Loans will provide technical assistance to boost borrower success and reduce risks.
The program has three stages of milestone-based loans: $60,000, $175,000, and $500,000. As businesses achieve specific milestones, they can apply for larger loans, creating a system that allocates more funding to companies with higher chances of success. Officials hope this approach protects against losses and fosters a more robust cannabis industry.
Dasheeda Dawson, the Founding Director of Cannabis NYC, is thrilled about establishing the loan fund. She recognizes its crucial role in providing much-needed financing for budding cannabis entrepreneurs. The fund’s speedy creation within a year of the initiative’s launch exemplifies New York City’s dedication to dismantling barriers for aspiring individuals in the cannabis community.
New York marijuana regulators unveiled their plans to create a pilot program for cannabis farmer markets last May. The goal, as stated by the New York State Office of Cannabis Management, was to cater to consumer demand and facilitate the legal entry of last year’s products by growers. Unfortunately, recent reports suggest the plan’s progress has reached a standstill, according to Marijuana Moment.
Nonetheless, the NYC opportunity fund loan significantly strides toward a fair and inclusive cannabis industry. By actively involving private equity lenders and providing financial support to social equity applicants, the city is cultivating an environment where aspiring marijuana entrepreneurs can flourish. — Story Filed By 420CanNews Staff
Here’s More Information on the Topic:
NyCEDC to Establish Cannabis NYC Loan Fund
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NYC Launches Cannabis Fund to Support Social Equity Applicants, Seeks Private Funders