California and Michigan Boost Social Equity in Cannabis Industry with New Funding Initiatives

LOS ANGELES- In a significant move to bolster social equity within the cannabis industry, both California and Michigan have recently taken steps to channel more funding into social equity cannabis companies. California is set to allocate $15 million to local governments with social equity permit programs, while Michigan has earmarked $1 million in grants for eligible businesses.

California’s Commitment to Equity

The California Equity Grants Program, overseen by the Governor’s Department of Business and Economic Development (GO-Biz), is designed to distribute state funds to city or county governments. These governments then have the option to either administer social equity programs directly or pass the funds to businesses as startup capital. The application period for this round of funding remains open until December 14.

This initiative follows a previous allocation in February, where $15 million was divided among 16 cities and counties, with Oakland and Los Angeles receiving approximately $2 million each. Other recipients like San Francisco, Sacramento, Humboldt County, and Long Beach were awarded over $1 million, while eight others received under $1 million.

The grant’s primary goal is to support equity applicants and licensees by providing technical support, regulatory compliance assistance, and aid in securing necessary capital. This approach aims to lower barriers to licensure and employment in the regulated cannabis industry.

Michigan’s Approach to Social Equity

The Michigan Social Equity Grant Program, in contrast, plans to distribute its $1 million among a potential 100 businesses, with each receiving about $10,000. This allocation, announced by the state Cannabis Regulatory Association (CRA), will focus on funding employee education, business needs, or community investment.

Eligibility for these grants requires businesses to hold a valid recreational cannabis business permit, be majority-owned by a registered social equity program participant, and be a member of the state’s “Social Equity All-Star Program.” The application period for this grant opens on Friday and will close on January 26 at 5 p.m.

CRA Executive Director Brian Hanna emphasized the importance of this funding for social equity licensees, many of whom have invested heavily in their cannabis businesses. Hanna expressed enthusiasm about the potential positive impact these funds could have on the businesses’ employees and their communities.

Both states’ initiatives represent a growing trend in the cannabis industry to address social equity issues, providing a much-needed boost to businesses that have historically faced barriers in this burgeoning sector.