Cannabis Business Assistance Fund (CBAF)

About this page. This page explains the Cannabis Business Assistance Fund in plain language. The Fund is authorized under Chapters 245 & 255, Acts of 2023 - PDF. If anything on this page conflicts with the statute, the statute controls.

Program Status

CBAF is a financing resource operated by Commerce. Its current funding opportunity is the Social Equity Conditional Licensee Grant. The application portal opened June 3, 2025.

Confirm your eligibility window. A conditional license is valid for 18 months from the date it is awarded. MCA awarded 205 conditional Social Equity licenses through lotteries held in the first half of 2024, so many of those 18-month windows have now closed. Confirm your current license status and grant eligibility with Commerce before applying.

What This Program Does

CBAF provides grants and loans to small businesses — including small, minority-owned and small women-owned businesses — entering Maryland’s adult-use cannabis industry.

Eligible uses of the Fund

The Fund may provide:

Grants or loans to small businesses for license application assistance, operating or capital expenses of a business participating in the adult-use cannabis industry, or targeted training to support participation in the industry
Grants to Historically Black Colleges and Universities for cannabis-related programs
Grants to business development organizations, including incubators, to train and assist small, minority, and women business owners and entrepreneurs seeking to become licensed

Current Funding Opportunity: Social Equity Conditional Licensee Grant

This grant provides direct capital assistance to Social Equity Applicants awarded a conditional Maryland cannabis license. It is structured with milestone-based tranches that guide licensees toward becoming operational and securing a standard adult-use cannabis license.

The funding is intended to strengthen a licensee’s position in attracting other funding as they arrange the capital needed to become operational.

Background

The Maryland Cannabis Administration (MCA) awarded 205 conditional Social Equity Cannabis Licenses through lotteries held in the first half of 2024. Lottery winners initially received a conditional license.

A conditional license is valid for 18 months from the day of the award. During that period, MCA verifies all information provided in the license application — including ownership and control of the business — and conducts health, safety, and security inspections.

What the Adequate Capital Requirement is

The Adequate Capital Requirement (ACR) is a license milestone mandated by MCA at the six-month mark after a conditional license is issued, demonstrated through MCA’s supplemental application.

MCA set ACR amounts based on estimated start-up costs for each license type, to confirm the licensee is making a good-faith effort toward securing the capital needed to become operational. CBAF grant maximums are calculated as match rates of the ACR.

Who Can Apply

To be eligible to register for the Social Equity Conditional Licensee Grant, your business must meet and maintain all of the following:

Meet or exceed the minimum Adequate Capital Requirement determined by the MCA
Be an existing business in Good Standing with the State of Maryland
Be a small business — defined as an entity with 0–50 employees per license
Hold a Maryland Social Equity Cannabis Business Conditional License and meet all licensing requirements in Title 36 of the Alcoholic Beverages and Cannabis Article and COMAR 14.17
Be at least 51% owned by individuals whose personal net worth does not exceed $1.7 million

How personal net worth is calculated

For this program, net worth is the value of an individual’s assets remaining after total liabilities are deducted, including assets held jointly or as community property with a spouse.

Net worth does not include:

The individual’s ownership interest in the applicant
The individual’s equity in their primary place of residence
The cash value of any qualified retirement savings plans or individual retirement accounts

What the Grant Can Fund

Total funding per license, inclusive of all four tranches, is determined by license type:

Maximum grant	Dispensary	Processor	Grower/Cultivator
Standard	Up to $131,250	Up to $183,750	Up to $525,000
Micro	Up to $43,750	Up to $61,250	Up to $175,000

Maximum disbursement amounts are calculated as match rates of the Adequate Capital Requirement.

How You Receive Your Funds

Grants are disbursed incrementally across four tranches, based on demonstrated achievement of certain milestones. Each tranche requires specific documentation, including proof of payment where applicable.

Once Commerce verifies a milestone, it approves that tranche’s disbursement.

If you miss a milestone. If an applicant does not fully verify expenses or meet milestones for a particular tranche, that disbursement will be declined or reduced. If an applicant meets some but not all of a tranche's requirements, Commerce may consider a partial disbursement at its discretion.

Documentation requirements

Invoices, receipts, and supporting documentation must be:

In the name of the business entity
For expenses incurred between the award of the conditional license and conversion to a standard license

Proof of payment may include a cancelled check, credit card statement, payment app statement, or bank statement.

See the milestone and eligible-expense chart - PDF - 210.64 KB for details on each tranche.

Documents You Will Need to Apply

Before registering in the portal, have these ready:

Your lottery number assigned by the MCA
A copy of your Maryland Social Equity Cannabis Business Conditional License letter issued by MCA, with the date of issuance clearly noted
A list of owners meeting the personal net worth qualification and each one’s ownership percentage. Each must submit a Schedule of Personal Net Worth - XLSX — see the tip sheet - PDF - 536.72 KB for help completing it
A completed W-9
Evidence of Good Standing with the State. A screenshot of the results from Maryland Business Express is sufficient — a formal certificate of good standing is not required
Copies of invoices detailing services rendered, and proof of payment for eligible expenses (necessary for Tranches 2, 3, and 4)

Important. Incomplete applications cannot be processed. If needed, work with your advisor(s) to complete the application.

How to Apply

Register in the portal. Create access to the CBAF application portal. Online applications are not available at this time. Please reach out directly to the contact listed below.
Submit your funding requests tranche by tranche, with the required documentation for each milestone.

Grant Terms

There are no fees or costs to apply for a grant from the Fund
Grants are taxable
Grants are provided to applicants upon approval
Grantees are subject to random audit for compliance with the intended purpose of the grant
Applicants or grantees who do not comply with the intended purpose are subject to repayment of the grant in full

Information sharing between agencies. MCA has the right to request information from grantees about how CBAF funds were spent, including the right to subpoena records from third-party vendors and service providers — in part to evaluate whether grantees are being charged fees, premiums, or surcharges that specifically and disproportionately burden cannabis businesses. Commerce and MCA may share information between agencies regarding applicants and applications.

Resources for Cannabis Businesses

Funding Source and Required Disclosures

Authorizing legislation: Chapters 245 & 255, Acts of 2023 - PDF.

Licensing requirements are codified in Title 36 of the Alcoholic Beverages and Cannabis Article and COMAR 14.17.

Applicants should consult the authorizing legislation and applicable regulations for the complete legal requirements governing this program.

Contact

Cannabis Business Assistance Fund
Email: [email protected]

A member of the Commerce team will respond to your inquiry.

Cannabis licensing questions
Email: [email protected]

Technical assistance for Social Equity Conditional Licensees
Email: [email protected]