NJ LEAF Program

Welcome to NJEDA’s Online Application for the NJ LEAF Program

The NJ LEAF pilot loan program provides flexible lending options for both fixed assets and working capital, helping licensed recreational cannabis cultivators, manufacturers, and testing laboratories grow and stabilize their operations in New Jersey.

Loan Features:

• Up to $1,500,000 for fixed assets (owner-occupied commercial real estate and equipment).
• Up to $500,000 for working capital to support inventory purchases and recurring operating expenses paid in the ordinary course of business.
• Loan terms of up to 30 years for real estate, 10 years for equipment and 7 years for working capital. The loan term and amortization will be determined based on the loan’s purpose and the useful life of the collateral provided.
• Fixed interest rates are based on the U.S. Treasury rate (or 1% floor, whichever is higher), with basis point additions for credit risk and term selected.
• Up to 100% loan-to-value for real estate and 90% (hard cost) for equipment.

Before you get started with your application, please review the board memo and program specifications to ensure eligibility.

Eligibility Requirements: Eligible applicants must meet the following requirements to be eligible for the NJ LEAF program:

• The applicant must be a for-profit entity holding a valid and current recreational annual license digital card as per the final recommendation issued by NJCRC in one of the following categories:
  • Class 1 Cannabis Cultivator
  • Class 2 Cannabis Manufacturer
  • Cannabis Testing Laboratory
  • Note: Medicinal-Only ATCS and Medicinal-Only Testing Labs are not eligible.
• Must be based in New Jersey and employ fewer than 250 full-time employees. (Includes total individuals employed at all locations on a full-time basis in and outside of New Jersey.)
• Be operating, generating revenue, and incurring expenses for at least one full calendar year prior to the date of application.
• Must provide a complete federal business tax return demonstrating a full 12 months of business operations, as shown by the most recent federal business tax return required to be filed.
• Have annual gross revenues of $5 million or less, as reported on the applicant’s most recent federal business tax return required to be filed.
• Commit to the creation or retention of one New Jersey full-time W2 job for every $65,000 of NJEDA exposure within two years of closing.
• Must provide fixed asset collateral (real property or equipment) to secure the loan.
• Demonstrate the ability to repay the loan with a historical Global Debt Service Coverage Ratio of at least 1.0x.
• All individuals and/or entities having 10% or greater ownership in the applicant’s business must provide unlimited guarantees for the duration of the loan term.
• At least one personal guarantor (owner of the applicant business) must have a credit score of 650 or above in at least one of the following data sources provided in the credit report: Experian FICO II and TransUnion FICO Classic 04 as provided by CoreLogic Credco.
• Provide valid and current New Jersey Tax Clearance Certificate to demonstrate the applicant is in substantial good standing with the New Jersey Division of Taxation prior to approval.
• Be in substantial good standing with NJEDA, NJCRC, the New Jersey Department of Labor and Workforce Development, and the New Jersey Department of Environmental Protection prior to approval, with all decisions of substantial good standing at the discretion of those entities.
• All applications are subject to underwriting and credit approval. Additional requirements may apply.
• In cases where a real estate holding company is involved in the real estate transaction, the licensed cannabis-operating entity will remain the primary applicant, and the real estate holding company may be required to serve as a co-applicant.

Application Fee:

• There is a $500 non-refundable fee due upon submission of your application.

Before Applying:

• It is recommended that you review the Application Checklist. Submitting all applicable documents listed in the application checklist will help ensure your application is complete and avoid delays in processing.
• You will also be asked to provide the name of your NJEDA Business Banking Officer when completing your application.
• If unsure of who your NJEDA Business Banking Officer is, please contact us at businessbanking@njeda.gov for assistance.