Chicago, IL-(Effingham Radio)- Third round of Cannabis Social Equity Loan Program provides $31.8 million in direct forgivable loans
Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced the recipients of $31.8 million in loans through Round III of the Cannabis Social Equity Loan Program. Through the program, 95 qualified, licensed social equity businesses across all license types – craft growers, dispensaries, infusers, and transporters – are receiving Direct Forgivable Loans (DFL) financed by the State of Illinois. Recipients were determined based on factors including social equity status, financial need, financial resources, and progress toward becoming operational. The full list of this round’s recipients can be found here.
“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.”
After providing approximately $23.3 million through the first two rounds of the Cannabis Social Equity Loan Program – including $18.3 million to craft growers, infusers, and transporters in Round I, and $5 million to dispensaries in Round II – DCEO opened Round III to include all license types. Loan recipients include social equity craft growers, infusers, transporters, and dispensaries licensed by the Illinois Department of Agriculture (IDOA) and the Illinois Department of Financial and Professional Regulation (IDFPR).
“The Cannabis Social Equity Loan Program helps to build equity in Illinois’ cannabis industry,” said DCEO Director Kristin Richards. “The cannabis licensees funded through Round III reflect Illinois’ commitment to promoting inclusive economic development across this sector.”
Information on Direct Forgivable Loan Program Structure
| Eligibility | Qualified, licensed social equity dispensaries |
| Selection Process | Selection for funding was prioritized based on factors including social equity status, operational status, and a financial assessment. |
| Lender | State of Illinois |
| Interest Rates | 4% after an 18-month grace period of no required payments and 0% interest; applicants can also pursue forgiveness prior to accruing any interest. |
| Options for Forgiveness | The loan principal may be up to 100% forgivable upon providing documentation for eligible business expenses. |
“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 (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.”
