Program Summary
The Cannabis Business Loan Fund is an opportunity for social equity licensed cannabis businesses to receive lending capital to build and improve their current business operations. The Cannabis Business Office has partnered with mission-based lender, NuProject, to provide lending capital that is not otherwise available through traditional lenders. This is a low-interest, revolving loan fund, meaning that the dollars will be used to continue supporting future cannabis businesses as loans are repaid.
Using an initial investment of $1,000,000, NuProject will provide loans between $50,000 and $150,000 to social equity licensed cannabis business owners. Loans will have favorable and manageable terms based on borrower needs, and interest generated will be reinvested into the revolving loan fund for use with future borrowers. NuProject is uniquely qualified to manage this loan fund due to their history of mission-based lending practices within the cannabis industry. These mission-based lending practices allow businesses to access loans, even if they would typically be excluded from lending opportunities due to lack of collateralization, limited cash flow, participation in the cannabis industry, or various other reasons.
The Cannabis Business Loan Fund:
- Is for operational social equity licensed cannabis businesses
- Offers low-interest loans between $50,000 and $150,000
- Partners with NuProject to provide expert character-based lending practices
Overview
Type: Loans
For: Social Equity Licensed Cannabis Businesses
Amount: Loans between $50,000 and $150,000
Application period: The next application period will open 8/15/2023
OEDIT division: Cannabis Business Office
Eligibility
Applicants must meet all of the following criteria:
- Possess an active social equity license (aka Finding of Suitability) in Colorado from the Marijuana Enforcement Division, and own at least 51% of the business
- Be an operational and licensed cannabis business
- Have completed a Technical Assistance program
- Agree to participate in Technical Assistance offered by NuProject
- Meet the lending requirements set forth by NuProject
Examples of eligible loans:
- Loans between $50,000 and $150,000
- Interest rates capped at 6.25%
- Loans for working capital, location renovations or expansions, equipment, etc.
How to apply
Please visit the NuProject website for more information.
Frequently Asked Questions
Question: Where do I apply?
Answer: Please navigate to the NuProject website to learn more and begin your application.
Question: Do I need to possess a social equity license (example: Finding of Suitability)?
Answer: Yes. The business must be at least 51% owned by individuals that possess a social equity license. This can be one or more individuals to combine for at least 51% ownership.
Question: Do I need to be operational? How long?
Answer: Businesses must be operational and be able to show at least 18 months of revenue to apply to the Cannabis Business Loan Program.
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