Illinois Awards $31.8 Million in Forgivable Loans to 95 Social Equity Marijuana Businesses

Illinois Governor JB Pritzker and the Department of Commerce and Economic Opportunity announced today that 95 licensed social equity marijuana businesses will receive a combined $31.8 million through the third round of the state’s Cannabis Social Equity Loan Program.

According to the announcement, the funding is being distributed as direct forgivable loans to businesses across every major marijuana license category, including craft growers, dispensaries, infusers and transporters. State officials said recipients were chosen based on factors such as social equity status, financial need, financial resources and how far along they are toward becoming operational.

Round III marks the first time the program has included all license types. The state says the first two rounds provided roughly $23.3 million, including $18.3 million for craft growers, infusers and transporters in Round I, and another $5 million for dispensaries in Round II.

Through the structure outlined by the state, qualified licensed social equity dispensaries, craft growers, infusers and transporters are eligible. The loans come from the State of Illinois and carry 0% interest during an 18-month grace period with no required payments. After that, the interest rate rises to 4%. The state says borrowers may also qualify for up to 100% forgiveness of the loan principal if they provide documentation showing the money was used for eligible business expenses.

“Through this investment, we are continuing to break down barriers and expand opportunities for entrepreneurs who have too often been left out of emerging industries,” said Lieutenant Governor Juliana Stratton. “The Cannabis Social Equity Loan Program is about more than access to capital—it’s about building generational wealth, strengthening communities, and ensuring that equity remains at the center of Illinois’ cannabis industry. I’m proud to see these businesses move closer to opening their doors and creating jobs across our state.”

DCEO Director Kristin Richards said, “The Cannabis Social Equity Loan Program helps to build equity in Illinois’ cannabis industry. The cannabis licensees funded through Round III reflect Illinois’ commitment to promoting inclusive economic development across this sector.”

“This funding is essential to expanding opportunities and equity within Illinois’ cannabis industry,” said CROO Regulation Oversight Office Erin Johnson. “Consistent investment in the Cannabis Social Equity Loan Program has helped develop and grow the state’s cannabis industry allowing Illinois to become a leader in the sector.”

“The Cannabis Social Equity Loan Program plays a vital role in breaking down barriers and expanding opportunities for communities that have historically been excluded, from this industry,” said Representative Yolanda Morris (D-Chicago). “This investment will deliver meaningful support to dispensaries across the state while advancing our commitment to creating a more equitable and inclusive cannabis marketplace.”

“This third round of funding is a testament to importance of creating policy from an equitable lens,” said Senator Celina Villanueva (D-Chicago). “The Cannabis Social Equity Loan Program plays an essential role in the state’s efforts to create a more equitable cannabis industry.”