Frequently Asked Questions About Social Equity Grants

The application submission windows for the CanRenew community restoration grant, CanGrow farmer training grant, and CanGrow farmer loan grant are now closed. For more information, visit the CanRenew Community Restoration Grant webpage and the CanGrow Grant webpage.

Both grant programs will be available statewide. Eligible projects can be implemented in any part of Minnesota, as long as projects meet program criteria.

Grant amounts will vary depending on the specific program. Please refer to the CanRenew and CanGrow program guidelines for detailed funding information.

We won’t know specific number of grants awarded until applications have been submitted and evaluated. In terms of program dollar amounts, the CanRenew program has $1 million in available funding, and the CanGrow program has $2 million. Administrative costs are capped at 3%, with the remaining funds available to be awarded as grants.

Immigration status is not requested as part of the application process.

Out-of-state applicants can apply as long as their investments are made in Minnesota. Both nonprofit and for-profit organizations can apply, provided they meet the eligibility criteria. 

Proposals are actively encouraged from organizations that can make an investment in Minnesota communities where long-term residents are eligible to be social equity applicants as defined by Minnesota Statutes, section 342.17.

Grants are awarded to organizations, not to individual applicants. However, organizations that serve individuals impacted by the criminal justice system are eligible to apply.

The grants are awarded to organizations, not individuals. However, the programs are designed to support investments in communities with long-term residents who are eligible social equity applicants.

Organizations can apply for these grants; individuals benefit from them. 

Organizations eligible for CanRenew and CanGrow grants include: 

• Nonprofit organizations 
• Educational institutions 
• Private businesses 
• Community groups 
• Units of local government 
• Partnerships between different organization types

The disability community can benefit from both programs. CanRenew can support investments in communities with social equity eligible residents, and these communities and the needs addressed in the grants can support people with disabilities. CanGrow offers technical assistance and loan support specifically for Minnesota farmers and this can include farmers who are disabled.

For the CanRenew program, funds must be used in eligible Minnesota communities identified as social equity areas. For CanGrow, priority is given to organizations that work in these eligible communities; however, residency in the area is not required. Additionally, priority consideration is extended to farmers who may reside in social equity areas but operate their business in another location. This information is collected and assessed by the grantees, as they are responsible for screening farmers for lending opportunities.

CanGrow Revolving Loan Grants can be used to support businesses owned by farmers entering the legal cannabis industry. Private businesses may apply for CanRenew funding for community investment projects in social equity areas. They may also apply for CanGrow Technical Assistance Grants as long as the businesses are providing technical assistance to farmers.

Funds will be disbursed according to the project timeline and budget outlined in the grant agreement. The grants are processed on a reimbursement basis: upfront funding is not provided. Funds will be disbursed once all documentation is received and follow state processes. Applicants can expect a schedule upon approval, which will assist in planning cash flow. Grants will need to begin operating within 90 days of award notice.

The loans and grants are designed to provide financial assistance to farmers looking to enter the cannabis industry. Nonprofits administering the loan programs will help fund farmers entering the market, ensuring they have the resources to succeed.

Yes, depending on the type of grant, other organizations may be eligible. For example, the technical assistance training grants are not restricted to nonprofit organizations, whereas the loan programs may specifically require nonprofits with relevant agricultural experience.

No. Nonprofit companies will run the revolving loan funds, not cultivation operations. The funding originates from OCM and goes to nonprofits, who then administer the loan programs for farmers.

The grants primarily target farmers, but programs like CanNAV are designed to support a broader range of individuals, including those who are social equity verified and not necessarily involved directly in farming.

No, the current grant programs do not directly fund cannabis businesses. Instead, they provide funding to resource providers (e.g., nonprofits, training programs) who then support farmers and other industry participants.

No, there are currently no disqualifications for receiving multiple grant programs. Different programs support different audiences. For example, the CanGrow Farmer Training Grant supports farmers, while the CanNAV program supports a broader industry of social equity verified individuals.

For the loan program, nonprofit organizations must demonstrate relevant agricultural expertise, which can be satisfied by having individuals with agricultural business development experience on their board of directors. This ensures the organization has the capacity to support farmers effectively. However, other organizations without direct agricultural experience may still qualify for technical assistance training grants, which have more flexible eligibility criteria.

Generally, no. The loan grant is intended specifically to provide direct loans to farmers, not to fund training activities. However, if certain training components—like helping applicants understand how to apply for a loan—are directly tied to administering the loan program, they may be considered allowable administrative expenses.

Yes. While it’s not required to apply for both grants, an organization may choose to apply for both the training and loan grants and structure their program so that participation in a training component is a prerequisite for accessing loan funds. This approach is allowed as long as it aligns with the intent and guidelines of both programs.

Once grants are awarded, the selected organizations will be listed publicly on the OCM website. In addition, these organizations are expected to conduct local outreach efforts to inform farmers in their communities about the available loan opportunities.

Funds are expected to begin distribution between September and October 2025. However, the exact timing will depend on each grantee’s internal capacity, readiness, and risk assessment process.

It’s possible. Readiness is one of the key evaluation criteria for grant applicants. While award notifications are expected in August, actual project implementation could begin as early as September or October 2025, pending budget approval and risk management review.

Most likely, yes. Since program operations are expected to begin in the fall, after the outdoor growing season has ended, participation for outdoor farmers would likely begin during the next cultivation cycle.

Possibly. Some support may become available by late Q3 or early Q4 of this year, depending on how quickly grant recipients are able to set up and begin distributing loans. However, no guaranteed timeline is in place at this stage.

For the training grant, the 12-month period begins from the project’s official start date, which will likely be in September 2025. This would make the end date approximately September 2026. In contrast, the loan program can operate for up to five years, based on the loan terms and project plan approved by OCM.

The funds do not go directly from OCM to cannabis businesses. Instead, they go to nonprofit organizations, who then issue loans or sub-grants to farmers entering the industry.

A certified loan program refers to a structure where the Office of Cannabis Management (OCM) provides funding to an organization, which then uses that funding to establish a loan program for farmers. These loans are intended to be repaid and can support various business costs such as startup expenses and other allowable uses outlined in the Request for Proposals (RFP). To qualify, the organization must demonstrate the ability and legal authority to administer a lending program.

The certification is not self-attested. Organizations must already be legally registered, licensed, and certified to issue loans under applicable federal and state lending laws. OCM does not issue certification itself—the authority to lend must be a built-in function of the organization’s operations as a business or nonprofit.

Yes. There are grant writing professionals and organizations in Minnesota who provide services to assist with grant applications. A resource list may be made available to applicants who request support.

Yes. The meeting recording is available on the OCM YouTube page.

Information is available on the OCM website under the “business” tab, where there’s a grants section. For a full list of programs (including those not listed online), email the Cannabis Equity inbox at cannabisequity@state.mn.us to receive a handout detailing all the grant programs.

This funding cannot be used for current operational expenses. However, if you are expanding an existing program—such as increasing the number of participants or enhancing services—that would be considered an eligible use of funds.

No, there is no cap on equipment expenses. The only restriction is on administrative costs, which are capped at 10%. If you intend to allocate a significant portion of the budget toward equipment, you just need to clearly justify it in your budget and work plan.

Yes, eligibility is based on the participants you serve, not just your headquarters’ location. However, in your application, you will need to provide strong documentation on how your programming directly supports social equity-eligible communities.

Yes, but your application should clearly explain how participants from social equity-eligible communities will access your program, including details on transportation and outreach efforts.

The key factor is the eligible community, not the farm itself. If a project supports reinvestment into early-stage farming communities—such as teaching new agricultural methods to urban farmers who meet the revenue threshold—then it qualifies. However, the grant does not fund revenue-generating operations. If the goal is to fund farm operations, that would be ineligible. If the project is an educational program benefiting early-stage farmers, that would qualify. Farming is just one of seven ways to qualify for social equity status. If the project supports an eligible community—such as funding a park renovation in a community with many small farmers—it could meet the grant criteria.

In the application, you’ll need to describe how your project supports social equity-eligible communities. You can provide an address, and we have mapping tools to verify eligibility based on income levels, military-affiliated communities, and farming areas. You can also submit a narrative explaining how the project serves social equity applicants. If working with justice-impacted individuals, you may need data showing how participants reflect those communities. However, attendees of your sessions do not need to go through social equity verification.

Yes, an organization can apply for multiple projects. However, the intent is to serve as many communities as possible, and funding is limited. While the program budget is expected to grow in future years, applicants should be mindful that funding must be distributed across many projects.

Yes. Each project is intended to last up to one year. If an organization has a new eligible project that serves communities and supports social equity applicants, they are encouraged to apply again in future funding cycles.

That decision has not yet been made. There is potential for increased funding, especially for organizations that demonstrate strong performance in their first year. However, the funding range for next year has not been determined.

Yes, but it depends on the project and the amount of funding already received. If related, the funds should be included in the budget proposal to show how dollars are allocated. Preference may be given to projects serving communities differently than those already funded by ReCAST, but receiving ReCAST funding does not automatically exclude an organization from eligibility.

Currently, the grant is designed for one-year, high-impact projects. Funding cannot be automatically renewed or extended beyond the approved work plan. Because this is a competitive grant cycle, any request for additional funds must go through another competitive process. This is mandated by law. Additionally, for this first year, the $1 million available must be allocated before the end of the biennium, or the funds will revert to the general fund.

The grant pool is $1 million, with awards ranging from $50,000 to $200,000. This means there could be as many as 20 or as few as five grants awarded. Next year, the program expands to $15 million, so applicants not selected this year are encouraged to apply again.

It depends. Minor modifications, such as purchasing a different brand of the same product, are allowed. However, significant changes, like switching from building a playground to purchasing a vehicle, would be outside the scope. Any changes made after signing the grant agreement would require an official modification process. 

There are provisions around budget modifications, including thresholds for changes. These details will be included in the grant manual for selected grantees. Since this is a competitive grant process, modifications to the work plan will be limited.

Yes, a 990 form is acceptable. The purpose of the requirement is to assess the organization’s financial stability and ability to fulfill the grant terms. However, Minnesota Statutes, section 11.309.53(3) states that a charitable organization with total annual revenue over $750,000 must file an audited financial statement prepared by an independent CPA.

Community groups or organizations that do not otherwise have legal recognition will need to partner with a fiscal sponsor/nonprofit organization for financial auditing and reconciliation processes.

Churches are assumed nonprofit but are not required to submit a formal request to the IRS for 501(c)(3) status. If selected as a finalist and your church has not filed a 990 tax form, another avenue for financial audit will need to be discussed and required.

Yes, this is the first year. The program was created by state legislation and funded through the general fund, not cannabis tax revenue. However, cannabis tax revenue does contribute to the general fund.

There is no specific provision or scoring requirement for the number of individuals served. The focus is on ensuring the funds benefit eligible communities that have been disproportionately affected by cannabis prohibition. 

Yes, but the fiscal sponsor must remain the same for the duration of the grant.

Yes, the key requirement is demonstrating that the individuals served meet the criteria. Organizations can use the provided mapping tool or submit internal data to confirm eligibility. The focus is on who is served rather than the specific geographic location.

If it is one project targeting different issues, then yes, it is eligible. However, if you are proposing multiple separate projects, they would need to be structured as one cohesive project in the grant application.

No, a match is not required to receive points. The budget and work plan section includes up to 15 points, but match funding is not a requirement.

The grant cannot cover current operational expenses, but if you are expanding or continuing a previously funded program, it is eligible. If you are seeking funding for ongoing operations without expansion, it is not eligible.

Yes, for-profit businesses are eligible. However, grant funds cannot be used for revenue-generating activities. If the project involves developing a curriculum for youth entrepreneurship, that is an eligible expense.

Yes, as long as the supplies are for the youth development program and not for business operations.

The organization submits the application and identifies the fiscal sponsor, who must remain in place for the duration of the grant.