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Grant Opportunities for Minnesota Cannabis Businesses in 2025
The legalization of adult-use cannabis in Minnesota also led to the creation of grant programs to help minorities navigate the legal cannabis market.
The Office of Cannabis Management (OCM) and the Department of Employment and Economic Development (DEED) oversee the major cannabis grants for. These grants serve as invaluable tools for microbusiness and social equity applicants to get access to funding and expert guidance to help grow their businesses.
The State, along with its relevant bureaus, is in the process of setting up regulations and guidelines to help implement a variety of funding programs. Here’s how you can apply for cannabis business funding in Minnesota in 2025.
CanRenew Community Restoration Grants For Cannabis Business
The CanRenew Community Restoration Grant, administered by Minnesota’s Office of Cannabis Management (OCM), provides funding to support investments in communities where residents qualify as social equity applicants. With $1 million available in FY 2025, grants range from $50,000 to $200,000 per project.
The grant supports economic development, public health, violence prevention, youth programs, and civil legal aid. Eligible applicants include nonprofits, tribal nations, educational institutions, local governments, private businesses, and community groups. Priority is given to projects with strong community backing and a proven track record of success.
Funding:
- Businesses can receive cannabis financing from $50,000 to $200,000, which must be spent within 90 days after the grant notice and before the one-year contract ends.
- OCM announced that there will be $1 million of funding for cannabis businesses available.
Eligibility:
- Nonprofit organizations, community groups, private businesses, educational institutions, tribal organizations, and local governments.
Important Dates for CanRenew Applicants:
- Request for Proposals (RFP) start: February 10, 2025
- Applications due: March 24, 2025, up to 11:59 p.m.
- Those who will be issued grants will be announced: May 15, 2025
- Work plans approved and grants begin being distributed: June 30, 2025
- OCM’s CanRenew Grant informational and technical assistance sessions: February 21, March 5, and March 11, 2025
CanGrow Grants
CanGrow supports farmers entering the legal cannabis industry by offering regulatory services, expert resources, and community-based support to reduce costs, risks, and compliance issues. The program is divided into two:
- Farmer Training Grants - for educational and technical support
- Farmer Loan Grants - low-interest loans perfect for farmers who want to shift to cannabis cultivation
Funding:
- Technical assistance grants: $10,000- $50,000.
- Loan financing grants (per organization): $200,000 to $500,000
- Individual farmer loans: $2,500-$50,000 (or up to $150,000 with matching cannabis funds)
- For 2025, $2 million in funding is available.
Eligibility:
- Nonprofit organizations, tribal organizations, educational institutions, local governments, private businesses, and community groups
- Priority:
- Organizations with a proven track record in training or support services for farmers.
- Projects serving areas with eligible social equity applicants.
Important Dates for CanGrow Applicants:
- OCM will announce the application timeline in early 2025. For more information, visit the CanGRow page.
CanStartUp, CanNavigate, and CanTrain Grants
The Department of Employment and Economic Development’s (DEED) cannabis support programs aim to foster the success of Minnesota’s legal cannabis industry through technical assistance, loan capital, and workforce training, with a focus on Social Equity Applicants and their communities. DEED will soon release Requests for Proposals for the following grant programs.
- Funding: Loans range from $2,500 to $50,000 and can be up to $150,000 with private matching funds.
- Eligibility: nonprofit corporations that will provide cannabis funds to new microbusiness, with priority given to social equity applicants
- Funding: $1,000,000 in total for 2025
- Eligibility: organizations that aim to develop technical assistance resources about the regulatory structure of the legal cannabis industry
CanTrain
- Funding: up to $20,000 for grantees. $2,000,000 in total for 2025
- Eligibility: For organizations that provide training and individuals to receive training
Dual Training Grant: Legal Cannabis Industry
The MN Office of Higher Education (OHE) in collaboration with the Department of Labor and Industry (DLI) oversees the Dual Training Grant: Legal Cannabis Industry (DTG LC).
DTG LC aims to support dual-training programs that allow on-the-job training under training providers. Businesses that apply under DTG LC may only use the cannabis funding to foster a learning environment that will upskill employees and enhance company culture. This means individuals may complete diplomas, certificates, and other credentials through this funding.
Funding:
- Grants for cannabis business can be worth $150,000 for instruction costs ($6,000 per dual trainee) and up to $15,000 for trainee support, with funds provided via reimbursement.
- In 2024, the state allotted $1,880,000 for DTG LC.
Eligibility:
An applicant must meet ALL of the following:
- Be a cannabis employer or organization of cannabis employers
- Will have a dual-training program that meets competency standards
- Employ an eligible dual trainee
- Sign a contract with an eligible training provider
- If annual gross revenue exceeded $25 million last year, pay at least 25% of related instruction costs
- If the current or prior DTG LC recipient maintains good standing on all grant requirements
- If current or prior recipient of other Minnesota State grants, maintain good standing on all grant requirements
Important Dates for Dual Training Grant Applicants:
- Request for Proposal opens: March 4, 2025
- Deadline for technical questions: April 3, 2025
- Grants management system registration deadline: April 9, 2025
- Request for Proposal submission deadline: April 15, 2025
- Grantee announcement: May 27, 2025
- Mandatory grantee orientation: May 29, 2025
- Prepare grant documents: June through July 2025
- Sign grant contract: August 2025
- Optional dual trainee welcome session: August 7, 2025
- Begin dual-training program: August 2025
For more information, visit the Minnesota Office of Higher Education’s website.
Small Business Environmental Improvement Loans
Small Business Environmental Improvement Loans is a project by the Minnesota Pollution Control Agency (MPCA) that focuses on environmental concerns. MPCA lets microbusinesses borrow funding for environmentally-friendly equipment purchases and activities like clean-ups for contaminated sites. Alongside this, businesses can also repay with a zero percent interest rate for seven years.
Funding:
- Grants are between $1,000 and $75,000.
Eligibility:
- Fewer than 100 full-time employees
- Have after-tax profits under $500,000
Important Dates for Loan Applicants:
- The state awards small business environmental improvement loans throughout the year. For more information, contact smallbizfunding.pca@state.mn.us.
Key Resources and Organizations to Get Cannabis Funding
Minnesota Office of Cannabis Management (OCM)
Aside from overseeing the regulation of the legal cannabis market in Minnesota, OCM also ensures equitable access. They specifically offer cannabis social equity assistance to foster a diverse and inclusive playing field.
Minnesota Department of Employment and Economic Development (DEED)
DEED provides resources and funding for businesses, including those in the cannabis industry through its grants and loans. These types of cannabis business funding support the expansion and workforce development of cannabis businesses.
Local and National Cannabis Industry Association
Certain organizations advocate for the growth and development of the cannabis industry. They offer grants through partnerships and sponsorships so that a small business can grow and thrive.
Nonprofit Organizations Focused on Cannabis Equity
Nonprofit organizations focus on addressing social injustices with their social equity and diversity initiatives. For underserved communities, reaching out to nonprofits can help get more cannabis financing.
Potential Challenges in Accessing Grants
While the legal cannabis market continues to thrive, applicants still face challenges accessing cannabis funding opportunities. Because of federal restrictions, for example, the largest grant-giving body in the US, the Small Business Association (SBA), does not entertain small businesses and offers cannabis social equity assistance. This limits applicants to a smaller pool of grants available for businesses in Minnesota than expected.
Grant application can be time-consuming, particularly during the preparation for the evaluation process. The cannabis industry is no exception; authorities require extensive documentation proving its financial infrastructure and supporting its case. The complex processes often exceed the expertise and capacity of most grants for a cannabis business, especially those from social equity and microbusinesses.
Secure Grants with CannDelta
Starting a cannabis business in Minnesota requires careful planning, regulatory compliance, and strategic investment. Whether you’re looking to launch a cultivation facility, retail dispensary, or vertically integrated operation, CannDelta is here to guide you through every step. From securing licenses to navigating zoning laws, building a strong business plan, and ensuring compliance, our expert consultants provide the knowledge and support you need to succeed. Plus, with grant programs like CanRenew and CanGrow, eligible businesses and farmers may have access to funding opportunities to support their ventures. Don’t navigate this complex industry alone—partner with CannDelta today and turn your cannabis business vision into reality!
Frequently Asked Questions
How do I get a grant to open a dispensary in Minnesota?
Minnesota offers cannabis grants for minorities who want to open a dispensary in Minnesota. Under the Office of Cannabis Management (OCM), retailers who qualify for the social equity program can apply for CanRenew to obtain funding and technical resources that will help to start a business. Applicants may also check CanStartUp, CanNavigate, and CanTrain programs under the Department of Employment and Economic Development (DEED) for funding assistance.
How do I raise funding for a cannabis business in Minnesota?
Check with the OCM which grants and loan programs are open for application. Then, check if you are eligible to apply. In most cases, the State prioritizes qualified social equity applicants and underserved communities affected by past cannabis policies. Once you have confirmed your eligibility, it’s time to submit your application alongside the required documents and complete them before the deadlines. These programs follow strict guidelines and a selection process. It’s best to prepare as early as now and ask for expert guidance to ensure compliance and boost the success of securing funding.
How do I qualify for a grant for a cannabis business in Minnesota?
Most microbusiness and social equity applicants can qualify for cannabis grants. However, there are several grants and loan programs offered for organizations and individuals. It’s best to check the eligibility criteria set by the corresponding Minnesota government unit that will administer them. You may check the Office of Cannabis Management’s Division of Social Equity for CanRenew and CanGrow grant programs. Meanwhile, the Department of Employment and Economic Development (DEED) is in charge of CanStartUp, CanNavigate, CanTrain, and other assistance programs focused on the cannabis industry.
