Last month, numerous cannabis entrepreneurs celebrated the announcement of over $2 million in grants provided by a distinctive state program aimed at business owners from communities heavily impacted by strict drug laws.
Additional funding amounting to millions may be on the horizon.
The grants originate from the state’s Cannabis Social Equity Trust Fund, designed to reinvest marijuana sales tax revenues back into businesses to mitigate the enduring impacts of the War on Drugs.
Currently, the fund has amassed over $27 million, as reported by Juan Vega, the assistant secretary for communities and programs in the Executive Office of Housing and Economic Development.
Eligibility for this funding extends to participants of the state’s cannabis social equity program, which supports individuals from areas with historically high levels of drug enforcement and those convicted of certain drug offenses with training and resources.
![Community Empowerment and Reinvestment Grant press conference](https://allthatcannabis.com/storage/2024/05/Cannabis-Companies-Eligible-for-Millions-in-State-Social-Equity-Funds.jpg)
Executive Office of Housing and Economic Development’s assistant secretary for communities and programs Juan R. Vega speaks at the Community Empowerment and Reinvestment Grant press conference in downtown Springfield Tuesday afternoon, Aug. 22, 2023. (Hoang ‘Leon ‘Nguyen / The Republican)
The high start-up costs in the cannabis industry are well-known, as Vega pointed out in a conversation with MassLive. He emphasized that these funds are aimed at groups typically lacking substantial financial resources or access to capital.
The initial distribution of grants—totaling $2.3 million among 50 companies—offered vital funding for recipients grappling with challenges such as paying rent or meeting payroll requirements.
Vega mentioned that an upcoming grant program set to begin this summer will offer larger grants, designed to help social equity program participants either start or grow their businesses.
This initiative primarily focuses on enabling companies to concentrate on expansion without the constant worry over finances.
According to the state’s Cannabis Control Commission, Massachusetts leads the nation in requiring full participation in the legal cannabis market from communities most negatively affected by marijuana prohibition and enforcement.
![Dris Cannabis Delivery](https://allthatcannabis.com/storage/2024/05/1714908605_183_Cannabis-Companies-Eligible-for-Millions-in-State-Social-Equity-Funds.jpg)
Chris Fevry is shown at the Natick headquarters of Dris, a cannabis delivery service he operates with his wife and business partner Dharry Pauyo. They were among the first recipients of a grant from the Cannabis Social Equity Trust Fund.Will Katcher/MassLive
The Social Equity Trust Fund is innovative in that it’s the first managed by Vega’s office to direct funds towards for-profit entities rather than nonprofits or municipal projects.
The deployment of the fund took longer than some entrepreneurs anticipated, hampered initially by a legal technicality that kept the fund unfilled for over a year despite collecting 15% of state marijuana sales taxes.
Following legislative adjustments last year, Vega’s team expedited the evaluation of grant applications and the allocation of funds.
Meaka Brown, a board member advising on the administration of the fund, expressed satisfaction with the rollout, emphasizing the goal to provide immediate financial relief to recipients.
As the administration prepares for the next round of funding, Brown stressed the importance of transparency and efficiency in distributing the funds, with an interest in demographic data on grant recipients including ownership by women or veterans.
“Let’s get down to business,” she urged, focused on the efficient allocation of funds for the coming year.
Gov. Maura Healey noted that the funds will forge a sustainable and inclusive pathway for entrepreneurs in the cannabis sector who might otherwise face significant barriers to success.
![Maura Healey announces pardons](https://allthatcannabis.com/storage/2024/05/1714908605_427_Cannabis-Companies-Eligible-for-Millions-in-State-Social-Equity-Funds.jpg)
Gov. Maura Healey announces a major initiative for blanket pardons related to simple cannabis offenses, joined by key state officials. (SAM DRYSDALE / STATE HOUSE NEWS SERVICE)State House News Service
“Marijuana prohibition and enforcement have historically put communities of color at a disadvantage,” stated Lt. Gov. Kim Driscoll, noting that the Social Equity Trust Fund aims to correct these injustices by providing a reliable pathway for aspiring cannabis entrepreneurs from these communities.
The first announcement of grants occurred shortly after the Governor’s Council endorsed Healey’s comprehensive plan to pardon individuals convicted of simple cannabis possession in Massachusetts, potentially aiding hundreds of thousands, though estimates vary widely.
OTHER NEWS: California Agency Grants Over $50M in Cannabis Tax Funds to 31 Organizations