Today, New York City 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 announced that applications are open for the first phase of the Cannabis NYC Loan Fund. The fund, administered by the cannabis-focused private equity firm Tuatara Capital is now open to applications from Conditional Adult-Use Retail Dispensaries (CAURD) licensees, who will have access to an initial deployment of $2 million in funding. The fund will provide affordable and flexible capital to early-stage cannabis businesses to promote the development of an equitable cannabis industry in New York City. Tuatara Capital brings nearly a decade of experience working exclusively in the cannabis industry with a proven track record of success, managing approximately $400 million in committed capital.
Loans of up to $100,000 will be provided to CAURD licensees to be used for start-up and ongoing operating expenses. Unlike other loan funds, the Cannabis NYC Loan Fund includes unrestricted use for business expenses, with an emphasis on flexibility for borrowers; loan terms of up to three years, and interest rates capped at 9.5 percent. Interested parties must apply through the Loan Fund website.
The Cannabis NYC Loan Fund's first phase application will be open through November 4, 2024. Phase two is expected to launch in the spring of 2025 with at least $6 million available for funding. Phase two aims to expand the fund's size through additional capital partners to finance early-stage and more mature licensed cannabis businesses across all license types, with CAURD licensees still prioritized.
Source: NYC/EDC.