Connecticut unveils $50 million cannabis equity loan program
Connecticut’s Social Equity Council, in collaboration with the Department of Economic and Community Development, has rolled out their new loan initiative to assist cannabis businesses. The Canna-Business Revolving Loan Fund aims to provide financial backing to social equity candidates looking to upgrade, renovate, or establish cannabis-related properties. With the state legislature giving approval to the fund and the Governor signing off on it, $50 million in bonds is available, aiding not only these entrepreneurs, but also municipalities and non-profits. According to reporting from WTIC Hartford Fox61, the funds are tailored to cover expenses such as machinery acquisition, technological advancements, and leasehold enhancements among others.
The loan caters to a number of business needs while explicitly excluding expenses like tax payments, licensing fees, and personal loans. Loan terms and conditions include an interest rate between 6% and 9%, with a potential discount for those who complete the SEC Cannabis Business Accelerator Program. The framework has a stringent repayment schedule which is dictated by asset lifespan or the borrower’s repayment capability. One notable aspect is that all major stake-owning applicants must provide personal guarantees, ensuring the loan’s safe return.