NYC launches cannabis loan fund to boost equity in growing industry

New York City has taken a major step in supporting its emerging cannabis industry with the launch of the Cannabis NYC Loan Fund, offering an initial $2 million in affordable capital to Conditional Adult-Use Retail Dispensary (CAURD) licensees.

This first phase of the fund, announced by NYC Department of Small Business Services (SBS) Commissioner Dynishal Gross, New York City Economic Development Corporation (NYCEDC) President Andrew Kimball, and Cannabis NYC Founding Director Dasheeda Dawson, aims to help small cannabis businesses overcome financial barriers in a rapidly growing but challenging market.

The fund, administered by Tuatara Capital, a private equity firm specializing in cannabis with nearly $400 million in managed capital, provides loans of up to $100,000 for start-up and operating expenses. With interest rates capped at 9.5 percent and loan terms of up to three years, the program emphasizes flexibility, giving CAURD licensees access to much-needed financial resources to succeed in New York City’s competitive landscape.

Mayor Eric Adams underscored the importance of the fund in addressing the inequities faced by those most impacted by cannabis prohibition. “The legalization of cannabis has allowed a new economy to emerge in New York state while addressing the harmful impact of the ‘War on Drugs’ on Black and Brown New Yorkers,” Adams said. “For too long, the intended beneficiaries of the new market have not been given the resources they need to truly succeed. With the launch of the Cannabis NYC Loan Fund, we are giving up to $2 million in capital directly to the entrepreneurs who need it.”

The loan fund is part of the broader efforts by the city to support legal cannabis operators, in conjunction with enforcement programs like “Operation Padlock to Protect,” which has shut down over 1,200 illegal cannabis shops, and various other initiatives through Cannabis NYC.

Dasheeda Dawson, Cannabis NYC Founding Director, highlighted the historic significance of this fund: “As we open the first phase of the Cannabis NYC Loan Fund, we take another step towards justice and opportunity for those most harmed from previous criminalization. New York City’s historic investment empowers justice-impacted entrepreneurs and begins to dismantle the barriers to accessing capital in the legal cannabis industry.”

With this fund, New York City is setting a precedent for equitable growth in the legal cannabis market, providing entrepreneurs with the tools to build sustainable businesses and compete in a fair and inclusive economy. Applications for the fund are now open, with further phases expected to expand support for this burgeoning industry.