The New York City Economic Development Corporation (NYCEDC) and the Department of Small Business Services (SBS) have chosen Tuatara Capital to manage the Cannabis NYC Loan Fund. The fund will start with a $2 million initial tranche to support early-stage cannabis businesses, promoting an equitable cannabis industry in New York City. Tuatara Capital, with nearly a decade of cannabis industry experience and $400 million in managed capital, will oversee the fund.
Targeted at $20 to $30 million, with $9.4 million from the City, the fund will launch with $2 million for licensed Conditional Adult-Use Retail Dispensary (CAURD) businesses. Tuatara will also fundraise to attract additional investment. The fund aims to provide flexible loans to cover start-up and ongoing expenses, with businesses able to access larger loans over time based on financial growth.
The fund supports Mayor Eric Adams' initiative to foster an equitable cannabis industry, following the launch of Cannabis NYC in August 2022. This hub provides resources and services for New Yorkers entering the legal cannabis market, including technical assistance and free loan application support.
Deputy Mayor Maria Torres-Springer, NYCEDC President Andrew Kimball, and Cannabis NYC Founding Director Dasheeda Dawson emphasized the fund's role in supporting new businesses, promoting economic growth, and rectifying past injustices. Tuatara Capital, founded in 2014, will manage the fund's operations, loan origination, and portfolio performance, supporting early-stage cannabis businesses during a critical development phase.
Source: edc.nyc