Colorado Announces Loan Recipients For Expanding Equity In Cannabis Industry
The industry has historically struggled to secure capital from conventional avenues
The Cannabis Business Office (CBO) of the Colorado Office of Economic Development & International Trade (OEDIT) unveiled the pioneering recipients of Colorado’s Cannabis Business Loan Program, a collaboration with the mission-based lender NuProject. This initiative seeks to amplify the growth of social equity licensed cannabis businesses, aiming to bolster operations, revenues, and job retention or creation.
Eve Lieberman, OEDIT’s Executive Director, remarked, “Promoting equity in the cannabis sector while supporting the growth of these businesses is essential. Their expansion and enhanced services will not only augment their revenues but will also foster job creation, benefiting both local communities and Colorado’s economy.”
The cannabis industry has historically struggled to secure capital from conventional funding avenues designated for small enterprises. Bridging this financial chasm, the Cannabis Business Loan Program will offer loans ranging from $50,000 to $150,000. These can be utilized for a myriad of purposes including expansion, equipment acquisition, real estate purchases, and operational capital.
Among the first beneficiaries are:
- IDY Distributors: A Denver-centric company providing distribution services tailored to the state’s flourishing cannabis industry. The loan will catalyze the expansion of its services, which now includes warehousing and order fulfillment for numerous renowned cannabis brands in Colorado, simultaneously opening the door to new employment prospects.
- Simply Pure: As the brainchild of the nation’s premier Black, Veteran marijuana licensee, Denver’s Simply Pure aims to revamp its dispensary’s facade and kickstart a delivery collaboration with Puff Pass, another Black-owned equity-driven enterprise. The additional capital will also be channeled into enhancing their online presence, with potential revenue upticks estimated between $20,000 to $30,000 monthly.
Jeannette Ward, CEO of NuProject, commented on the partnership’s promise, “Our collaboration ensures swift fund allocation, which is pivotal in a rapidly evolving industry like cannabis. Supporting such high-potential businesses is an astute move that will culminate in job augmentation and augmented tax revenues for educational purposes.”
NuProject, renowned for its commitment to fostering diverse cannabis entrepreneurs, pioneers character-based lending—a lifeline for business owners typically sidelined by mainstream financing due to a lack of traditional collateral or past financial challenges. Moreover, it extends educational and mentorship initiatives to ready entrepreneurs for the loan process. In consort with CBO, NuProject will helm the Cannabis Business Loan Program as a self-replenishing fund, with the inaugural $1 million investment set to disburse an estimated $2.9 million over the subsequent decade, facilitating job creation and retention.
Concurrent with this loan program, the CBO has introduced multiple financial aids for Colorado’s equity-driven licensed cannabis businesses, including grants to bolster early-stage startups and support mature enterprises. The Cannabis Business Loan Program, in particular, is tailored to cater to the growth needs of more established cannabis businesses. The next funding cycle is presently underway, welcoming qualified businesses to apply.
