A New York City-specific fund for financially troubled marijuana companies is slated to a begin awarding loans to businesses as soon as this summer.
The Cannabis NYC Loan Fund, which is flush with $2.4 million in city money, plans to award loans of $50,000 to $100,000 with interest rates capped at 9.5% to as many as 40 entrepreneurs who also hold permits for conditional adult use retail dispensaries, NY Cannabis Insider reported. The fund also plans to give out a second round to a broader pool of businesses. Applications for loans should be available by the end of the summer from the fund.
The CAURD group is a specific round of 463 licenses awarded last year by the state Office of Cannabis Management.
Once that initial pool of cash is exhausted, the fund will be replenished with $7 million from state coffers for a “second phase” of small business loans with a 0% interest rate in order to attract private investors to contribute to New York City’s cannabis fund, according to NY Cannabis Insider. The city envisions the fund growing to as much as $39 million as a public-private partnership.
Loans from the second phase will also be available to a wider array of entrepreneurs than just the CAURD shops; “all license types” will be eligible for loans of up to $500,000 at interest rates of 11.5% to 13.5%, which NY Cannabis Insider noted is “slightly above” the prime rate “but below typical private loans to cannabis companies.”
All fund loan recipients are limited to businesses operating within the five boroughs of New York City.
Read the full story in Green Market Report.
John Schroyer, Green Market Report , 2024-06-21 19:03:03
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