Massachusetts has launched the Cannabis Social Equity Grant Program, an initiative through the state's Cannabis Social Equity Trust Fund to provide grants of up to $25 million to cannabis business owners in areas disproportionately harmed by past marijuana law enforcement.
The funding announcement follows a smaller $2.3 million emergency needs funding announcement in April aimed at helping social equity businesses deal with mounting financial pressures. That funding provided a total of $530,000 to 11 social equity companies in central Massachusetts, but several businesses feared they could fall victim to another fiscal cliff if more funding wasn't provided in time.
The funding will award grants ranging from $25,000 to $500,000 to qualified recreational and medical cannabis business license holders, as well as cannabis entrepreneurs navigating the complexities of the state and local licensing process.
The program is funded in part by cannabis sales taxes collected by the state and is overseen by the state's Department of Economic Development.
“The Cannabis Social Equity Grant Program demonstrates the federal government's continuing goal to promote equitable participation in the cannabis industry,” Rep. Dan Donahue (D-Worcester), co-chair of the state Legislature's Joint Committee on Cannabis Policy, said in an EOED press release on Tuesday.
Massachusetts was the first state to legalize marijuana, including provisions aimed at creating a path for individuals affected by the disproportionate enforcement of the War on Drugs to enter the newly legal industry.
Eric Casey is a staff writer for the Worcester Business Journal, focusing on the manufacturing and real estate industries.
