Cook County Cannabis Development Grant - Frequently Asked Questions
UPDATED: June 17, 2024
Answers to many questions about Cook County Cannabis Development Grant (“CCC Development Grant” or “the Program”) can be found in the program’s Getting Started Guide. Any questions not answered there or in this set of FAQs can be emailed to cannabis.oed@cookcountyil.gov.
What is the Cook County Cannabis Development Grant (“CCC Development Grant”)?
The CCC Development Grant program offers up to $3.6 million in grants to social equity-licensed cannabis businesses to support startup and operational business costs in Cook County.
What is the source of the grant funding?
This initiative is funded by the Cook County Equity Fund, created to address historic and continued disinvestment in marginalized communities. Specifically, the County’s Equity Task Force recommended establishment of this program to recognize the record of incarceration and exclusion communities of color have faced due to the War on Drugs.
How much funding is available for applicants?
Up to $3.6 million is available for CCC Development Grant. The program will offer four levels of funding based on the type of license the business holds:
- Craft grower business licensees are eligible to receive $150,000 grants.
- Dispensary business licensees are eligible to receive $75,000 grants.
- Infuser business licensees are eligible to receive $100,000 grants.
- Transporter business licensees are eligible to receive $75,000 grants.
How will awards be distributed across license types?
Cook County aims to make awards in proportion to the estimated number of potential applicants for each license type. The ultimate distribution of awards will depend on how many eligible applications are submitted for each license type.
Can applicants request grant amounts that are different from what's indicated for each license type?
No. All awards for a given license type will be the same amount, as indicated in the program materials.
When can I apply for a CCC Development Grant?
The application window will open at 8:00 AM Central Daylight Time (CDT) on Thursday, May 23, and remain open until 11:59 PM CDT on Friday, June 21.
When should grant applicants expect to be notified of their application status?
The grant review process will begin immediately after the application period ends. Cook County will notify all applicants of the status of their applications by late summer. The Grant Administrator, the Women's Business Development Center (WBDC), will distribute checks following notification and verification of all payment details.
Where can I get answers to my questions about CCC Development Grant?
Answers to many questions about CCC Development Grant can be found in the program’s Getting Started Guide.
The Cook County Bureau of Economic Development and the Grant Administrator, WBDC, are hosting two program information webinars on May 29 and June 7. Two virtual Q&A sessions will be held on June 4 and June 12. You can register for any of these sessions at [insert link to webinar/Q&A registration page].
Questions can also be emailed to cannabis.oed@cookcountyil.gov.
What types of business entities are eligible to apply for a CCC Development Grant?
Businesses with current State of Illinois Adult-Use Cannabis Social Equity licenses that either are already operating their craft grow operation, retail dispensary, infusing facility or transportation facility in Cook County or plan to do so are eligible to apply. This includes businesses that hold valid craft grower, infuser and transporter licenses, and businesses that hold valid dispensary licenses for BLS Region 5: Chicago-Naperville-Elgin. To be eligible, businesses must locate their cannabis operations in Cook County, not just their corporate office or headquarters.
Eligible businesses that are not yet open and operating in Cook County must demonstrate or attest to their commitment to locate in Cook County.
What types of business entities are NOT eligible?
Businesses that are NOT eligible for the program include:
• Any business that has NOT been awarded a license under the State of Illinois Adult-Use Cannabis Social Equity Program.
• Social Equity license holders that are already open for business outside of Cook County.
• Social Equity license holders that are not yet open and do NOT intend to locate in Cook County.
• Businesses that do NOT currently meet the State’s Social Equity Applicant criteria for ownership and control.
Can a business receive both a DCEO Direct Forgivable Loan and a Cook County Cannabis Development Grant?
Yes. Receiving one of these awards has no effect on your eligibility for the other award.
What does it mean that the program is prioritizing certain types of licenses?
If the Program receives more eligible applications than it can fund, priority consideration will be given to applications from cannabis-based businesses that:
• Received social equity cannabis licenses in 2021 or 2022;
• Currently operate in a Disproportionately Impacted Area (DIA) or have committed to do so; and/or
• Are majority-owned by individuals who currently reside in DIAs.
Applicants are required to provide the year the license was first issued, the address of the current or intended operating location for their cannabis-based business (if known) and the home addresses of the business’ owners. This information will be used to determine the order in which grants are made. Applications meeting one or more of these criteria will be given higher priority for grant awards.
If an application meets multiple factors, it will be prioritized ahead of an application that meets only one of them or none of them.
Who can complete and submit an application?
Cook County requires that an owner of the business that holds the State of Illinois Adult-Use Cannabis Social Equity Program license complete the application. No other individual is permitted to submit an application on behalf of such an owner. If there are multiple owners, the application will require information on each owner.
How do I apply?
The application is available in English and Spanish on the program webpage.
It is strongly recommended to complete the application on a laptop or desktop computer versus a mobile device.
We recommend that anyone considering applying review the Getting Started Guide before starting an application. We also recommend that you gather all the necessary documents in advance and that you plan to complete the application in one sitting. You cannot save an application, go back to revise it, or upload additional documents after it is submitted.
Once you have completed the entire application and uploaded the necessary documents, simply click on the “Apply Now” button at the end of the application.
What documentation is required for the CCC Development Grant application?
The application requires uploading a number of documents. Please download and review the Getting Started Guide prior to beginning your application.
Will all eligible applicants receive grant dollars?
Cook County has committed $3.6 million to support this program. We anticipate more applications than we have funds to support, and as a result, all eligible applicants may not receive funding.
If the Program receives more eligible applications than it can fund, priority consideration will be given to applications from cannabis-based businesses that:
- Were issued social equity cannabis licenses in 2021 or 2022;
- Currently operate in a Disproportionately Impacted Area (DIA) or have committed to do so; and/or
- Are majority-owned by individuals who currently reside in DIAs.
Are award decisions made on a rolling basis, or will all decisions be made after the application window closes?
All applications will be reviewed after the application window closes.
If my business was awarded more than one cannabis license under the State of Illinois Adult-Use Cannabis Social Equity Program, can I apply for more than one grant? Can I be awarded more than one grant?
Applicants can submit one (1) application for a CCC Development Grant for each type of valid license that they hold: craft grower, dispensary, infuser, and transporter.
Cook County will not award more than one CCC Development Grant to the same business.
If I submit more than one eligible application, how will you decide which application is awarded a grant?
Businesses that plan to submit more than one application will be required to rank-order their applications in case more than one is deemed eligible for an award. If a business has more than one eligible application, the Grant Administrator will consider this ranking to determine which of the business’ eligible applications will be awarded a grant.
We expect that the demand for CCC Development Grant will exceed the available resources. Therefore, we encourage you to submit one (1) grant application for each type of valid cannabis license that you were issued under the State of Illinois Adult-Use Cannabis Social Equity Program, as this offers your business the greatest chance of receiving a CCC Development Grant.
Why do I need to provide a Consent for Disclosure form as part of my application?
Cook County and its Grant Administrator will confirm certain information in your grant application with the agency that issued your cannabis license. The State licensing agencies – IDFPR and the Department of Agriculture (IDOA) – are required by law to keep every licensee’s application and its contents confidential. So, they need your permission to share that information with anyone, including Cook County.
Completing the Consent for Disclosure form allows the licensing agency to confirm for Cook County information like your business name, cannabis license number and social equity status. If you do not provide consent, your application cannot be reviewed and will not be eligible for an award.
Can I provide evidence of a personal bank account instead of a business bank account?
No. You must provide evidence of a bank account that is in the name of your cannabis-based business.
Do I need to have a cannabis bank account to receive a CCC Development Grant?
Yes, Cook County recommends that each applicant have a bank account with a financial institution that has authorized the account in question to be used with for their cannabis-based business. If a CCC Development Grant is awarded and the awardee has a non-cannabis bank account (i.e., an account with a financial institution that has not expressly consented to using that account for cannabis‐related activities), the awardee will be solely responsible for any impairment or loss of the grant proceeds resulting from that financial institution freezing the grant funds or the bank account or taking other legal compliance‐related action.
If I don’t have a federal tax return, can I upload something else instead?
Yes. If a federal tax return is not available for your cannabis-based business, or if you would prefer not to upload it, you may instead provide BOTH:
(a) The business’s IRS EIN confirmation letter (also known as “CP575” if it is the original letter or “147C letter” if is a replacement letter);
AND
(b) The organization, ownership and control table that your business most recently submitted to the state agency that issued its license (IDFPR or IDOA). Please upload the version of the table that you submitted most recently, even if it has not yet been approved by the licensing agency.
I don’t yet have a business bank account statement – can I upload something else instead?
Yes. You may provide ONE of the following alternative documents if you are unable to provide a recent business bank account statement:
(a) “Proof of account” letter provided by your financial institution; OR
(b) Copy of your bank account application; OR
(c) Letter from the financial institution confirming that your application is under review.
Prior to receiving a Cannabis Development Grant, businesses selected for an award must provide proof that they have a business bank account in place.
Can I provide a cell phone bill as proof of my current residential address?
A cell phone bill is acceptable proof if the bill (a) is in the business owner's name; (b) includes the business owner's home address; and (c) is dated within the last 3 months.
What do I do if I need to upload more than 10 documents as part of my application?
If you need to upload more than 10 documents, please use the supplemental document upload form, available here. This form will allow you to upload up to 10 additional documents. You may submit the supplemental document upload form as many times as necessary to upload all of your documents.
What do I do if my business has more than the 7 owners the application will allow me to name in Questions 10-11?
If you need to provide information for more than 7 business owners, please use the additional owners form, available here. This form will allow you to provide information for up to 7 additional business owners. You may submit the additional owner form as many times as necessary to include all of your business’s owners.
When will I know whether I have been selected to receive an award?
The grant review process will begin immediately after the application period ends. Cook County will notify all applicants of the status of their applications by late summer.
What conditions apply if my business is selected to receive a grant?
Each grantee will be required to execute a grant agreement with Cook County that establishes their obligations related to receiving a CCC Development Grant. Grantees’ obligations will include:
- Making no changes to the ownership structure that is in place at the time of the grant application for six (6) months following distribution of the grant award.
- Submitting documentation of eligible expenses to the Cook County BED within six (6) months of the grant award date, and
- Responding to an impact survey administered by BED within twelve (12) months of the grant award date.
When will I receive the money?
Cook County, via its Grant Administrator, the Women’s Business Development Center (WBDC), will distribute checks following notification and verification of all payment details.
How will I receive my award?
Grant funds will be sent in the form of a physical check made payable to the business entity that holds the cannabis license. Checks will be mailed via U.S. Postal Service First Class Mail to the business mailing address provided in the application.
Can I provide my bank routing number and account number to receive the grant electronically?
No. All grant funds will be sent to awardees as a check.
Do I have to pay taxes on the grant award?
The U.S. Treasury considers receipt of grant like this as taxable income that the business owner must recognize in their federal and state tax filings. In early 2025, the County’s Grant Administrator, Women’s Business Development Center (WBDC), will provide grant recipients with a Form 1099-MISC which will need to be reported on the grant recipient’s 2024 tax returns. To determine the proper tax reporting for the grant, please consult an attorney, accountant or other tax professional.
How can grant funds be used?
Grantees may use grant funds for ordinary and necessary expenses to start and operate their cannabis-based business in Cook County. Grantees may use grant funds to cover eligible expenses that have already been incurred, as long as those eligible expenses were incurred by the applicant after the date that their cannabis license was issued. The following types of expenses are eligible:
- Business inventory
- Debt incurred to support start-up and operation of the cannabis-based business, which may include personal debt incurred by owners to support the cannabis business
- Employee training and professional development related to operation of a cannabis-based business
- Furniture, fixtures and equipment
- Personnel (i.e., wages, benefits, employer-paid taxes)
- Physical improvements to the business location (i.e., construction required to prepare a business location for occupancy)
- Professional services (e.g., architect, accountant, attorney, designer, etc.)
- Regulatory fees, excluding fines, penalties or any other costs related to delinquencies or otherwise not complying with regulations
- Rent or mortgage costs for the business location
- Technology (i.e., hardware and/or software)
- Utility costs for the business location
- Vehicles purchased or leased for use by the cannabis-based business (transporter licensees only)
Businesses awarded CCC Development Grant must comply with all applicable state and local orders, laws, regulations, rules, policies and certifications governing any activities undertaken using grant funds received through a CCC Development Grant, including but not limited to any compliance with prevailing wage laws.
What uses of grant funds are prohibited?
Businesses cannot use the grant for:
- Expenses associated with cannabis-based business facilities that are located outside of Cook County
- Expenses of any kind that are not associated with the cannabis-based business for which the grantee applied and received funds
- Fines, penalties or legal expenses associated with litigation involving the State of Illinois or Cook County relating to any regulatory or criminal matter
- Personal expenses of any kind (e.g., travel, entertainment, food, etc.)
- Salaries, distributions/returns on capital, or other payments to business owners
- Taxes of any kind, including but not limited to federal, state, local, property and sales taxes
- Vehicles purchased or leased for use by the cannabis-based business (other than for transporter licensees)
Do I need to provide evidence that the grants funds were used for eligible costs?
Yes.
Each grantee will be required to execute a grant agreement with Cook County that establishes their obligations related to receiving a CCC Development Grant. Requirements will include submitting documentation of eligible expenses to the Cook County BED within six (6) months of the grant award date. The grant agreement will define what documentation is acceptable, and may include receipts, invoices, statements, and other reports that confirm the date, amount, and nature of the eligible expenses.
Grantees will be required to submit documentation of eligible business expenses to the Cook County Bureau of Economic Development (BED) within six (6) months of the grant award date. Acceptable documentation will be defined in the grant agreement that is executed between awardees and Cook County, and may include receipts, invoices, statements, and other reports that confirm the date, amount, and nature of the eligible expenses.