Cook County Awards $3.6 Million in Grants to 40 Social Equity Cannabis Entrepreneurs

Tue, 09/24/2024 - 12:00

(Cook County, IL) - Cook County Board President Toni Preckwinkle announced today that $3.6 million in Cook County Cannabis Development Grants have been awarded to 40 entrepreneurs from communities that have historically faced criminalization, incarceration and exclusion as a result of the War on Drugs. Cook County is awarding the grants to support Cannabis Social Equity License holders, helping to offset the expenses associated with opening and operating a cannabis business in Illinois.

“With the legalization of cannabis in Illinois in 2020, this new program will be essential in setting up cannabis-based businesses for long-term success,” said President Preckwinkle. “By reinvesting in communities of color that have been disproportionately impacted by the War on Drugs, we are ensuring they benefit from the economic opportunities in this emerging sector.”

The $3.6 million in grant funding with be distributed as follows:

6 craft growers, each receiving $150,000;
7 infusers, each receiving $100,000;
14 dispensaries, each receiving $75,000;
13 transporters, each receiving $75,000.

Cook County Commissioner Bill Lowry (3^rd District), who championed the initiative, said the grants will be beneficial in multiple ways.

“Supporting social equity applicants is not just a matter of fairness; it’s an essential step toward righting the wrongs of the past,” Lowry said. “For far too long, communities of color have borne the brunt of the War on Drugs, facing mass incarceration, exclusion, and disinvestment. The Cannabis Development Grant program is a vehicle for reversing some of that harm by providing critical financial resources to those disproportionately impacted. It’s also a pathway for small business creation, allowing individuals from these communities to participate meaningfully in the emerging cannabis industry. Ultimately, this initiative represents a commitment from Cook County to invest in our residents, foster economic opportunity, and address the disparities that have persisted for generations.”

Frederick Spencer, CEO of Blounts&Moore LLC, said the grant will help him grow his Chicago dispensary.

"Our goal is to be the leading model in Illinois for a cannabis retail experience where every person feels welcomed, comfortable, and valued,” Spencer said. “With this funding, we are excited to invest in operational improvements and our marketing efforts. We've learned that it's not enough to build a stellar dispensary—we have to tell people that we're here."

Reese Xavier, CEO and managing partner of HT23 Customer Crafters LLC, a craft grower in Chicago Heights, said the grant will play a pivotal role in supporting this business’ ability to launch its flagship edibles brand, SAVOUR.

“This crucial capital infusion will cover related expenses, including raw materials, packaging, and the hiring of essential personnel,” Xavier said. “While the grant does not fully close our capital gap, a successful launch of SAVOUR will bring us closer to our goal of creating opportunities within Cook County and building a thriving, 100% African American-owned cannabis company.”

The application portal was open from May 23, 2024, to June 21, 2024. The County received 108 applications, exceeding the available funding.

Grant Administrators prioritized applicants who:

Received their licenses in 2021 or 2022;
Operate in a State of Illinois-designated Disproportionately Impacted Area (DIA) in Cook County;
Or are majority-owned by individuals who reside in a DIA.

All 40 recipients met at least one of these priority criteria. Cannabis social-equity licenses are awarded by the State of Illinois. Qualifications include:

51% or more ownership by individuals who have lived in a DIA for five of last 10 years;
Personal or family involvement with the criminal justice system for cannabis-related offenses;
Businesses with 10 or more employees in which 51% or more of employees meet one of the above criteria.

For the Cannabis Development Grant, businesses must operate in Cook County or commit to doing so. Of the 40 recipients:

90% already have operational locations in Cook County—48% in suburban Cook and 42% in the City of Chicago;
80% have 10 or fewer employees;
Among those who provided demographic information, 80% identified as people of color;
Nine recipients are majority-owned by U.S. military veterans, and nine recipients are majority-owned by women, with two recipients falling into both categories.

The Women’s Business Development Center served as the grant administrator for the program, with support from Allies for Community Business. A full list of recipients is available on the grant program’s website.

Grant recipients have received notification of their award and will receive checks upon returning signed grant agreement. At the most recent Cook County Board of Commissioners meeting, held September 19, 2024, President Preckwinkle introduced an item outlining the FY2025 Equity Fund spending plan. The plan includes $1.5 million to support the Cannabis Development Grant program, which—pending approval from the Board of Commissioners in October—will provide additional funding for approximately 15 applicants who were eligible but did not receive funding this year.

For more information, visit cookcountyil.gov/service/cannabis-development-grant.

###