Loan Applications for All Cannabis Social Equity Licensees Set to Open August 11th
Third round of Cannabis Social Equity Loan Program will provide $40 million in forgivable loans
August 8, 2025
CONTACT: DCEO.Media@illinois.gov
CHICAGO – Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) today announced that applications for Round 3 of the Cannabis Social Equity Loan Program will open August 11th. This round of funding includes $40 million, which will be available through Direct Forgivable Loans (DFL) fully financed by the State. Loans will be available to qualified, licensed social equity craft growers, infusers, transporters, and adult-use dispensing organizations.
“Illinois is proud to have the most diverse cannabis industry in the nation as the state continues to support the industry,” said Governor JB Pritzker. “We’ve made historic progress fostering social equity in the marketplace and ensuring investment in communities across the state over the past five years. This new round of funding is another meaningful step toward uplifting social equity businesses in the cannabis industry.”
“Under the Pritzker-Stratton administration, Illinois has been on the frontlines in helping shape and build a cannabis industry that is rooted in equity, opportunity, and reinvestment,” said Lt. Governor Juliana Stratton. “This next round of funding will continue to strengthen and support this rapidly emerging sector by making sure its growth benefits every corner of this state—providing jobs and growing businesses in communities that have long been overlooked and underserved.”
Applicants will be selected based on factors including social equity status, financial need, and progress toward becoming operational. DCEO will also conduct an analysis of the applicants' financial resources. Eligible applicants must be a social equity cannabis businesses licensed by the Illinois Department of Finance and Professional Regulation (IDFPR) or the Illinois Department of Agriculture (IDOA).
“This round of loan funding is critical to building upon the State’s efforts to promote equity and diversity in Illinois’ growing cannabis industry,” said DCEO Director Kristin Richards. “The Cannabis Social Equity Loan Program has provided licensed social equity cannabis dispensaries throughout the state with loans they need to sustain and grow their businesses.”
Similar to Round 2, DCEO made several program improvements intended to streamline the application process and provide loans in a timely manner while ensuring all financial reviews are met. First, these loans will be structured as Direct Forgivable Loans that are fully financed by the State. Second, in order to build capacity and serve applicants as quickly as possible, DCEO has enlisted the support of advisory firm Baker Tilly to assess and verify the financial information submitted by applicants.
Applications for this round of loans will open August 11, 2025, and will be accepted until September 25, 2025, at 5:00 p.m. CDT. Eligible applicants can view instructions and apply for the loan here.
To help applicants prepare to apply for funding, DCEO will be holding the following webinars:
Round 3 Overview Webinar: Thursday, August 21, 2025 | 11:00 a.m. – 12:00 p.m.
Application Review: Thursday, September 4, 2025 | 11:00 a.m. – 12:00 p.m.
Office Hours: Thursday, September 18, 2025 | 11:00 a.m. – 12:00 p.m.
Interested parties can register for webinars on the DCEO website and are encouraged to reach out to CEO.CannabisLoan@illinois.gov for application assistance.
Round 3 Maximum Loan Amount Per License Type
License Type | Max Loan Amount | Total Number of Social Equity Licensees Eligible to Apply |
Craft Growers (IDOA) | $750,000 | 87 |
Infusers (IDOA) | $245,000 | 55 |
Adult-Use Dispensing Orgs (IDFPR) | $245,000 | 200 |
Transporters (IDOA) | $50,000 | 163 |
Information on Direct Forgivable Loan Program Structure
Eligibility | Qualified, licensed social equity cannabis business |
Selection Process | Selection for funding will be 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 any interest accruing. |
Options for Forgiveness | The loan principal is 100% forgivable upon providing documentation for eligible business expenses. |
Cannabis Social Equity Loan Program
The Cannabis Social Equity Loan Program is a first-of-its-kind program that was launched with the goal of providing low-interest loans to social equity licensees through a partnership with lending institutions. Since the program’s inception, approximately $24 million in loans have been awarded to 51 craft growers, infusers, transporters and adult-use dispensing organizations across Illinois.
“Through the Cannabis Social Equity Loan Program, Illinois has made great strides in reducing barriers to entry into the cannabis industry, and I am thrilled to hear about this third round of funding,” said Senate Majority Leader Kimberly Lightford (D-Hillside). “This funding will not only help grow Illinois’ cannabis industry, but it will also support communities that have historically suffered from disinvestment – creating a more equitable playing field within the industry.”
In 2024, the Cannabis Regulation Oversight Office (CROO) published the Disparity and Availability Study for adult-use cannabis licenses in Illinois. The study examined 559 adult-use cannabis licenses issued by the State to more than 400 businesses during the study period, which spanned from the start of adult-use cannabis sales, January 1, 2020, through January 31, 2023. The findings concluded that Illinois currently has the most diverse cannabis industry in the country.
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