Cannabis Business Assistance Fund (CBAF)

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The Cannabis Business Assistance Loan/Grant Fund (CBAF) is a financing resource operated by the Maryland Department of Commerce (Commerce), to provide grants and loans for small businesses, including small, minority-owned and small women-owned businesses entering the adult-use cannabis industry. CBAF may also provide grants to Historically Black Colleges and Universities (HBCUs) for cannabis-related programs and to business development organizations, including incubators, to train and assist small businesses, including minority and women business owners and entrepreneurs, seeking to become licensed to participate in the adult-use cannabis industry. Eligible Use of Funds Grants or loans to small businesses, including small, minority-owned or small women-owned businesses, for: License application assistance for participation in the adult-use cannabis industry; Assistance with the operating or capital expenses of a business participating in the adult-use cannabis industry; or Targeted training to support participation in the adult-use cannabis industry Grants to historically black colleges and universities for cannabis-related programs and to business development organizations, including incubators, to train and assist small, minority, and women business owners and entrepreneurs seeking to become licensed to participate in the adult-use cannabis industry. Current Funding Opportunity - Social Equity Conditional Licensee Grant

Purpose: Provide direct capital assistance to Social Equity Applicants awarded a conditional Maryland Cannabis License. This Conditional Grant Program is structured with milestone-based tranches for conditional licensees who meet the Adequate Capital Requirement (ACR) established by Maryland Cannabis Administration (MCA). The ACR is demonstrated through MCA’s supplemental application. It is also structured with milestones that guide the licensees towards becoming operational and securing the standard adult-use cannabis license.

This funding is intended to enhance the licensee’s position attracting other funding resources as they arrange the capital needed to become operational.

Background: The State of Maryland, facilitated through the Maryland Cannabis Administration (MCA), awarded 205 conditional Social Equity Cannabis Licenses by way of lotteries held in the first half of 2024. After evaluation by MCA, lottery winners initially received a conditional license. A conditional license is valid for 18 months commencing on the day of the conditional license award. During the 18-month conditional license period, MCA will verify all information provided in the license application, including ownership and control of the business, and will conduct health, safety, and security inspections.

Structured as a Conditional Grant, eligible applicants may apply for grant disbursements in four (4) tranches with a maximum amount for each license type. Maximum disbursement amounts are calculated as match rates of Adequate Capital Requirement (ACR). Adequate Capital Requirement is a license milestone mandated by MCA at the six-month mark of being issued a conditional license, and demonstrated through the supplemental application. ACR amounts were determined by MCA based on estimated start-up costs for each license type to ensure the licensee is demonstrating a good faith effort towards securing the necessary capital needed and making adequate progress towards becoming operational.

Total funding per license, inclusive of all four tranches, is determined by license type as shown in the following chart. Milestone-Based Conditional Grant…

Topic areas: Public Policy and Governance, Social Innovation and Community Development, Workforce Development.

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Cannabis Business Assistance Fund (CBAF) is administered by Maryland Department of Commerce (MD Commerce), listed via Maryland Department of Commerce.