New Jersey Cannabis Licenses: Did You Say “Microbusiness”?

With all of the latest buzz about cannabis opportunities in New Jersey, microbusiness licenses are an often-overlooked path into the industry.

Learn the ins and outs of this niche business license type from our own Bob Wagener, who has roots in the Garden State.

Back when I attended high school in Maplewood, New Jersey,  it would have been hard to imagine a day when your local cannabis emporium could be as commonplace as having a neighborhood bagel shop or pizzeria. However, that’s exactly what New Jersey is set to accomplish with the new microbusiness cannabis licenses.

Local-Business Focused

In addition to the regular classes of cannabis business licenses, which will be highly sought after, NJ will be offering a full array of micro licenses targeted at creating locally owned and operated cannabis businesses.

The new cannabis laws have set specific ownership and size parameters for microbusinesses to ensure these licenses are issued to local residents that play an active role in the day-to-day operations.

These restrictions will not only prevent larger entities from soaking up all the licenses, but they will also provide an opportunity for any size community to benefit from the creation of cannabis jobs and the generation of local tax revenue.

For those New Jersey residents looking to enter the next big industry here are a few things know:

  1. There will be six classes of micro licenses (listed below). You may only hold ownership in one micro license so you’ll want to pick the one that best suits you.
  2. The holder of the micro license must play an active role in the day-to-day operations.  Think of it like owning and operating a local restaurant.
  3. There are set size, volume, and employee count restrictions for each class of license.  From our analysis, these restrictions will allow for a very lucrative family-run business, but you won’t grow to be a “pot baron” with a micro license.
  4. The owner of the micro license must be a resident of the town, or a neighboring town, in which the business is located.
  5. Micro licenses can not be sold.  This may mean if you want to sell your business in the future, you’d be selling the assets and the purchaser would need to apply for their own micro license.
  6. The law does not place a limit on the number of micro licenses that can be issued.  That does not necessarily mean they will be easy to obtain. It is anticipated micro applicants will be subject to a rigid application process to determine their fitness to hold the license.

More Details will Follow

While there are some more micro business details in the law, this provides a good overview of what differentiates the micro licenses from the regular licenses. We also expect more details to be released as the Cannabis Commission refines the adult-use program. We are watching developments closely and will provide updates as we know more.

How We Can Help Now

From our extensive experience in obtaining similar licenses in other states, we have developed a program specifically to assist with the process in New Jersey.  The process is broken down into three phases.

  1. Foundational Materials: Including financial details, business planning, and pitch deck materials developed specifically for the NJ micro program. These materials provide a great foundation for you to better understand what to expect and how to get it done.
  2. Application Materials: We can provide detailed narratives to include with your application submission to ensure you submit the best application possible on your first attempt.
  3. Start-Up Guidance: The Canna Advisors team has extensive experience in the build-out and start-up of cannabis operations. We can guide you through the process to ensure you do it as efficiently as possible while avoiding common costly mistakes.

If you are interested in learning more about the NJ micro licenses, please reach out via the contact form or schedule an hourly consultation. We can help you determine if a micro business might be right for you.

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