NYCEDC to Establish Cannabis NYC Loan Fund

Launched in Partnership with the Department of Small Business Services, Fund Promotes Equity and Economic Growth During a Time of Rapid Expansion for the Cannabis Industry in New York City

Builds on Mayor Adams’ Commitment to Promote the Growth of an Equitable Cannabis Industry

Today, New York City Economic Development Corporation (NYCEDC) released a request for proposal (RFP) seeking a fund administrator and other lenders to launch the Cannabis NYC Loan Fund. Conceptualized in partnership with the NYC Department of Small Business Services (SBS), the fund will promote the development of an equitable cannabis industry in New York City by providing flexible capital at below-market rates to cannabis businesses owned and operated by social and economic equity applicants who have been awarded licenses to operate in New York City. NYCEDC is targeting a total fund size between $20 and $30 million, inclusive of its $8 million contribution, with additional dollars being raised from private lenders. The ultimate fund size will depend on private lenders’ responses to the RFP.

“Legalizing cannabis brought great promise of progress towards social and economic equity, but we cannot sit on our hands while illegal smoke shops crowd out the New Yorkers and communities who were disproportionately harmed by the ‘War on Drugs’ — now that they have an opportunity for justice,” said New York City Mayor Eric Adams. “The Cannabis NYC Loan Fund will help repair past harms by creating new opportunities and growing our city’s economy. With this new tool, our city’s budding industry is on a path towards equity, sustainability, and shared prosperity for all New Yorkers, particularly those most directly impacted by the decades of prohibition.”

This fund builds on the Adams administration’s commitment to promote the growth of an equitable cannabis industry in New York City, in concert with state partners. In August 2022, Mayor Eric Adams and SBS launched Cannabis NYC, a first-of-its-kind initiative and developing interagency hub of citywide resources and services for New Yorkers looking to participate in the legal cannabis market. Loans provided through the fund will support borrower’s start-up and ongoing operating expenses and will be coupled with technical assistance, to increase the likelihood of borrower success. Leveraging existing resources within SBS along with industry expertise, Cannabis NYC will manage the development of a technical assistance program for approved borrowers.  

NYCEDC will partly capitalize the Cannabis NYC Loan Fund as a subordinated lender, and is seeking additional partners, via the RFP, to help complete the fund rollout. More specifically, NYCEDC is seeking additional lenders, who will lend with NYCEDC, as well as a loan fund administrator that will source, structure, close and monitor loans to the cannabis businesses borrowing monies. NYCEDC’s objective in partnering with others is to leverage additional private capital and to maximize the reach and impact of the fund that is created.

Social and economic equity applicants include individuals who have lived in communities disproportionally impacted by cannabis prohibition and other underrepresented groups including minority and women owned businesses, distressed farmers, and service-disabled veteran-owned businesses. The capital and associated programming will support social and economic equity applicants at a critical moment in business and industry development.

The RFP opened on July 17, 2023, and will remain open through September 7, 2023. Additionally, NYCEDC will be hosting an in-person and virtual info session for interested lenders and fund administrators on August 3, 2023.

The RFP can be found HERE.

About NYCEDC 
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city’s future economy. To learn more about what we do, visit us on Facebook, Twitter, LinkedIn, and Instagram.

About Cannabis NYC (CNYC)
The NYC Department of Small Business Services (SBS) launched Cannabis NYC to make our city the global leader for cannabis industry excellence in education and equity across business, science, and culture, and is reaching this goal by actively creating an interagency hub of free resources and services for all New Yorkers interested in the cannabis industry. Through strategic outreach, public engagement, business services, and advocacy efforts, Cannabis NYC will support the creation of good jobs, successful small businesses, and sustainable economic opportunity to address historic harms of past cannabis prohibition. To stay connected, visit nyc.gov/cannabis and sign up for updates here.

About the Department of Small Business Services (SBS)
SBS helps unlock economic potential and create economic security for all New Yorkers by connecting New Yorkers to good jobs, creating stronger businesses, and building vibrant neighborhoods across the five boroughs. For more information, visit nyc.gov/sbs, call 311, and follow us on Facebook, Twitter, and Instagram.