$8M in forgivable loans for some cannabis business owners
CHICAGO (WICS) — The Illinois Department of Commerce and Economic Opportunity announced over $8 million in direct forgivable loan funds for the cannabis social equity loan program.
The Cannabis Social Equity Loan program was first launched in 2021 to provide low interest loans to those who are eligible social equity licensees. There are several criteria to qualify such as a previous cannabis conviction, state residency, and operating the business in a qualifying neighborhood or municipal residency.
“ We are launching this Direct Forgivable Loan Program to provide a much-needed jumpstart for social equity applicants who’ve faced hurdles in pursuit of capital funding,” Governor JB Pritzker said. "This $8.75 million will help our social equity licensees open their doors for business—a major step towards creating a prosperous cannabis industry here in Illinois."
There were significant delays with receiving the loans when the program began as it was a new industry. This new Direct Forgivable Loan program will make that funding available to all eligible participants. While adding an 18-month grace period with no payments or interest accrued.
The $8 million is distributed between $50,000 and $500,000 based on the business type of the loan seeker. The businesses are sorted by craft growers, infusers, and transporters.
