State Bond Commission to vote on $10M fund to aid cannabis entrepreneurs

The State Bond Commission today is considering allocating $10 million to provide low-interest loans to cannabis entrepreneurs as Connecticut’s recreational adult-use market prepares to come online.
    If approved, the Department of Economic and Community Development would receive $10 million to provide low-interest loans to social equity applicants seeking to start or maintain a cannabis establishment. Distribution of funds would be awarded based on applications submitted to the Social Equity Council.
    This would be the first allocation from the $50 million the state earmarked for technical assistance and business accelerator programs for social equity applicants. Per guidelines from the state, a business qualifies as a social equity applicant if it is at least 65% owned and controlled by individuals who had an average household income of less than 300% of the state median household income over the three tax years immediately preceding the application.
    Robert Lickwar, a partner at national accounting firm UHY LLP, told HBJ earlier this year that financing is one of the top challenges prospective cannabis companies face when entering the industry, particularly as traditional financial institutions like banks largely ignore the sector since marijuana is still a federally illegal drug.
Even as some entrepreneurs get ready to submit applications, like the trio launching AJAM LLC in Bridgeport, many are still trying to lock down financing options and figure out the best avenue for raising capital. 
    In addition, fees associated with licenses have been a concern for some hoping to start cannabis businesses.