The New Jersey Economic Development Authority (“NJEDA”) is preparing to launch the Cannabis Business Development (“CBD”) Grant program later this fall (date to be announced). This program is specifically designed to support licensed cannabis businesses in New Jersey by offering one-time reimbursement grants of up to $75,000. The goal is to reduce financial barriers to entry and expansion in the state’s growing adult-use cannabis market, particularly for independent operators.
What Is the NJEDA CBD Grant?
The NJEDA CBD Grant is a $5 million pilot program that offers financial reimbursement to New Jersey cannabis businesses that hold a valid annual license from the New Jersey Cannabis Regulatory Commission (“CRC”). The program is intended to offset operational and compliance costs, making it easier for local entrepreneurs to build sustainable cannabis businesses in the state.
5% of the total program funding is reserved for businesses located in CRC-designated Impact Zones. These areas have been disproportionately affected by cannabis prohibition and law enforcement and are given priority in many state equity initiatives.
Who Is Eligible for the CBD Grant?
Eligible applicants must hold a valid and current CRC annual license digital card. Accepted license types include Class 1 Cultivator, Class 2 Manufacturer, Class 5 Retailer, and Testing Labs, with the exception of labs that serve only the medicinal market. Conversion letters are not acceptable.
Applicants must also be in substantial good standing with the CRC, the New Jersey Department of Labor and Workforce Development, and the New Jersey Department of Environmental Protection. In addition, applicants must provide a current New Jersey Tax Clearance Certificate and a Certificate of Formation issued by the state.
Businesses that have previously received NJEDA funding through the Seed Equity Grant or Joint Ventures Grant are not eligible. Multi-State Operators (“MSOs”), as well as Alternative Treatment Centers (“ATCs”) authorized for adult-use conversion, are also excluded from participation.
What Expenses Are Covered?
The CBD Grant provides up to $75,000 in reimbursement for eligible expenses incurred within the 36 months prior to application. All expenses must be documented and verifiable, and they are subject to NJEDA approval.
Eligible expenses include commercial rent and related common area maintenance charges, provided the lease is fully executed, active, and in the name of the applicant or a related entity. Subleases are not eligible. Payroll expenses for employees or independent contractors are also reimbursable, as long as they are documented through appropriate payroll filings or equivalent records.
The program also covers training expenses for employees or contractors and professional services needed to operate or license a cannabis business. These may include legal services, accounting, security, marketing, branding, human resources, transportation, website development, and laboratory testing services. All professional services must be invoiced in the name of the applicant and must relate directly to business operations or regulatory compliance.
Expenses not eligible for reimbursement include business supplies, inventory, construction costs, penalties or fines, and any equipment or installation costs exceeding $2,000. Documentation such as paid invoices, proof of payment, and detailed descriptions of services is required for every claimed expense.
What Is the Application Process?
The NJEDA will accept applications online on a rolling basis. Grants will be awarded on a first-come, first-served basis as completed applications are received. The application window will remain open for up to three years from the program launch date or until all funds have been allocated, whichever comes first.
Applicants must submit a completed application along with a $750 non-refundable application fee. The date of submission will be determined by the date NJEDA receives the application fee. Applications submitted without the fee are considered incomplete and will not be reviewed.
In addition to the fee, applicants will be required to submit several supporting documents, including a copy of their CRC annual license digital card, a brief project description, a list of all business locations, and the NJEDA-provided Excel template listing eligible expenses. Applicants will also need to provide landlord certification of good standing if rent is being claimed, as well as certifications regarding their compliance status and use of funds.
If NJEDA staff request clarifications or additional documents, applicants will have ten business days to respond. Failure to respond in time may result in the application being withdrawn. Applications that lack a valid CRC annual license at the time of submission will be rejected without the opportunity to cure.
What Happens After Award?
Successful applicants will enter into a grant agreement with NJEDA and must comply with all terms for a 24-month compliance period. During this time, the business must remain open and in good standing with the CRC. If the business closes or becomes non-compliant within the first 12 months, the NJEDA may recapture the full $75,000 grant. If non-compliance occurs between 12 and 24 months, 50% of the funds may be recaptured.
Recipients are not allowed to transfer their license or expand into other states during the 24-month compliance period. The business must remain independently operated and focused solely on the New Jersey market.
