NJEDA's $15M NJ LEAF Program: A New Financial Lifeline for NJ Cannabis Businesses

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The New Jersey Economic Development Authority (NJEDA) Board announced in a recent press release that they department had approved $15 million for a new pilot program that will help address capital access gaps for recreational cannabis testing laboratories, cultivators, and manufacturers (1). The new funding program is called the New Jersey Lending for Equity, Access, and Financing (NJ LEAF) program. It will offer eligible cannabis companies, an option for low-cost financing of up to $1.5 million. This incentive will increase NJEDA’s financial tool offerings that will assist small businesses and strengthen the Garden State’s equitable economic development.

“Under Governor Phil Murphy’s leadership, New Jersey is building an equitable cannabis market by supporting every link in the supply chain,” said NJEDA Chief Executive Officer Tim Sullivan (1). “NJ LEAF will ensure companies that are cut off from traditional financial resources have access to the capital needed to succeed, helping to create jobs, strengthen communities, and solidify New Jersey’s long-term growth as a national leader in the cannabis market.”

NJ LEAF Program Offers Flexible Funding Options to Busineses

Flexible lending options will be offered through the NJ LEAF Program to eligible businesses for both working capital and fixed assets (1). This will allow these businesses to expand and stabilize themselves in the New Jersey marketplace. According to the press release (1), fixed asset loan amounts will begin being offered at $100,000 to a maximum amount of $1.5 million. Working capital support loans will be offered starting at $100,000 to a maximum amount of $500,000. With these flexible lending options, it will allow for businesses to cover day-to-day operational expenses, upgrade equipment, and invest in property.

“NJ LEAF will build upon the NJEDA’s already successful efforts to support the state’s burgeoning cannabis industry,” said NJEDA Chief Community Development Officer Tai Cooper (1). “New Jersey’s continued investment into this strategic sector is unlocking much-needed resources for diverse entrepreneurs, helping create jobs and strengthen communities.”

The press release explained how (1), “Eligible businesses must hold a valid and current recreational Class 1- Cannabis Cultivator, Class 2 – Cannabis Manufacturer, or Testing Laboratory annual license digital card issued by the New Jersey Cannabis Regulatory Commission (NJCRC). In addition, businesses must be based in New Jersey, employ fewer than 250 full-time employees, and must have been in operation for at least one calendar year with annual gross revenues of $5 million or less. In line with Governor Murphy’s efforts to foster an equitable cannabis industry, five percent of funding under the program will be set aside for businesses located in Impact Zones, which are areas designated by statute that were disproportionately impacted by cannabis prohibition or meet other statutory criteria.”

“It has been heartening to see the NJEDA’s commitment to financially supporting New Jersey’s cannabis entrepreneurs,” said New Jersey Cannabis Regulatory Commission (NJ-CRC) Chairwoman Dianna Houenou (1). “Our applicants and operators face obstacles that are unique to the industry without access to the financial tools available to other business owners. I am grateful that NJEDA with NJ LEAF and its grant programs are attempting to close that gap.”

In May 2025, $5 million was approved by the NJEDA Board for the Cannabis Business Development (CBD) Grant Program. This financial offering provided recreational cannabis entrepreneurs targeted financial support aimed at helping to provide relief and manage the costs involved with State and local compliance and operating expenses (1).

Reference

1. Njeda Board approves loan program to support New Jersey’s Cannabis Supply Chain https://www.njeda.gov/njeda-board-approves-loan-program-to-support-new-jerseys-cannabis-supply-chain/ (accessed Sep 17, 2025).