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Minnesota’s Department of Employment and Economic Development this week announced two new programs aimed at supporting new cannabis businesses.

The two programs are known as CanNavigate and CanStartup, and they’ll disburse $2 million and $6 million, respectively, to cannabis entrepreneurs. The programs are geared towards “social equity business owners and entrepreneurs from disproportionately impacted communities,” according to DEED. Applicants who have been convicted of cannabis-related crimes prior to the drug’s legalization in May 2023 fall under the “social equity” umbrella, which also includes military veterans.

CanNavigate awards businesses with grant money whereas CanStartup offers loans.

DEED partnered with Minnesota’s Office of Cannabis Management, or OCM, to create the programs. DEED’s Deputy Commissioner Kevin McKinnon said DEED has several programs that help small businesses, and the OCM filled the gaps when it came to DEED understanding the cannabis industry.

“You might be wondering what DEED knows about cannabis, and the answer is we knew nothing,” McKinnon said “Without OCM there to guide us, we could not have done this.”

DEED’s role in the two programs is choosing which businesses to fund, concentrating on individuals who may not have the means to start their own business in the cannabis industry, according to McKinnon.

If a business is not given any money this round, McKinnon said he is hopeful the Legislature will renew the grants on an annual basis.

OCM spokesman Jim Walker said once licenses get approved, Minnesota will start seeing dispensaries opening, though he didn’t share a date as to when licenses would be approved. As of today, Walker said 80% of license applicants are microbusinesses. The microbusiness license is just one of several that the state has created.

Applications for CanNavigate grants are due April 9, and applications for CanStartup loans are due April 11.

Meanwhile, the first round of applications for a cannabis license closes Friday at 11:59 p.m., with a lottery occurring in late May or early June after facing legal challenges last December. Walker added that a second round has yet to be announced but noted that OCM is planning on having another lottery take place in the fall.