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Social Equity Grant Program Frequently Asked Questions

Social Equity Grant Program Frequently Asked Questions

  • Over the last five years, cannabis industry stakeholders have generally agreed that the biggest obstacle facing Michigan’s Social Equity Program is the lack of funds going to assist social equity businesses. Last year’s state budget and this year’s state budget have started to address that issue with investments in social equity.

    The CRA’s Social Equity Program has established workgroups and done research to identify the specific barriers faced by social equity applicants. Since these funds have become available, the CRA has engaged in discussions with stakeholders. It has been made clear that the funds need to make their way to the social equity businesses and not be used to increase the size and scope of the regulatory body. Stakeholders wanted a grant program that provides financial support that could be used in a variety of ways by current social equity businesses. It was requested that the CRA establish clear and simple eligibility criteria and guidelines for applicants to follow.

  • To participate in the Social Equity Grant Program, an entity must:

    1. Have a valid adult-use license authorized and issued by the State of Michigan’s Department of Licensing and Regulatory Affairs, Cannabis Regulatory Agency.
    2. Have current, eligible social equity program participants that have majority ownership (over 50%) of the entity.
    3. The entity must be a certified participant in the CRA’s Social Equity All-Star Program.
    4. Adhere to all FY 2025 Grant Application terms and conditions. 

  • To participate in the Social Equity Grant Program, an entity must:

    1. Have a valid adult-use license authorized and issued by the State of Michigan’s Department of Licensing and Regulatory Affairs, Cannabis Regulatory Agency.
    2. Have current, eligible social equity program participants that have majority ownership (over 50%) of the entity.
    3. The entity must be a certified participant in the CRA’s Social Equity All-Star Program.
    4. Adhere to all FY 2025 Grant Application terms and conditions.

    Then, you must submit a Social Equity Grant Program application, located here, no later than 5:00pm, November 30, 2024.

  • Social Equity Grant Program funds must be spent in one or more of the following categories:

    • Funds spent on employee education may be used for an employee of the entity to take one or more classes or courses that are relevant to the entity’s business from an accredited institution.
    • Funds spent on business needs may be used towards compliance with licensing and regulatory statutes and rules.
    • Funds spent on community investment may be used on or donated to organizations, non-profits, and/or charities that positively impact the community in which the entity is located. 

    The CRA Social Equity Team will provide all grantees with a Final Report Template that they will have to complete and return by September 1, 2025. This will serve to certify that the funds were spent for the accepted purposes.

  • One million dollars has been allocated to the social equity grant program. The amount distributed to grantees that are approved for the program will be determined by how many are found to be eligible. The target date to determine the individual, equal amount distributed to grantees is January 31, 2025. All applications, awards, and reports may be published on the CRA website.

  • Only one grant will be awarded per entity, regardless of how many licenses the entity has.

  • The grant funds will be sent through the State of Michigan SIGMA Vendor Self Service system via Electronic Funds Transfer (EFT). Grantees will need to be EFT compliant. Grantees will need to do the following:

    • Obtain a SIGMA Vendor Customer ID number and mail code at the State of Michigan SIGMA Vendor Self Service system website: https://bit.ly/3PFZ6sM. 
      • Grantees will be able to review information, including user guides, at the State of Michigan SIGMA Vendor Self Service system website.
    • If additional assistance is needed, contact the SIGMA Vendor Helpdesk at 888-734-9749 or by emailing SIGMA-Vendor@michigan.gov. 
     

  • The CRA Social Equity Team will send a Notice of Deficiency via email to the email address provided in the Social Equity Grant Program application to request a response to all deficiencies found in the application. If you have additional questions regarding the Social Equity Grant Program, please send an email to CRA-SEGrants@michigan.gov.

  • The CRA Social Equity Team will provide all grantees with a Mid-Term Status Report Template that they will have to complete and return by May 30, 2025. This will serve to certify that the funds are currently, or were previously, spent for the accepted purposes, prior to submitting the Final Report. If no funds have been spent by May 30, 2025, the Mid-Term Status Report should indicate that.

  • The CRA Social Equity Team will provide all grantees with a Final Report Template that they will have to complete and return by September 1, 2025. This will serve to certify that the funds were spent for the accepted purposes.

  • The target date to distribute Social Equity Grant Program funds to grantees in one lump sum is January 31, 2025. You will need to certify how the funds were used by September 1, 2025, when the Final Report is due.

  • An amendment will be required if changes are made; simply email CRA-SEGrants@michigan.gov. As a reminder, Social Equity Grant Program funds must be spent in one or more of the following categories:

    • Funds spent on employee education may be used for an employee of the entity to take one or more classes or courses that are relevant to the entity's business from an accredited institution.
    • Funds spent on business needs may be used towards compliance with licensing and regulatory statutes and rules.
    • Funds spent on community investment may be used on or donated to organizations, non-profits, and/or charities that positively impact the community in which the entity is located.

    When you submit your Final Report, you will certify how the funds were used. The Final report is due September 1, 2025.

  • Grantees must submit a Mid-Term Status Report on or before May 30, 2025, and a Final Report and supporting documentation on or before September 1, 2025. Both reports must be sent via email to CRA-SEGrants@michigan.gov on a form provided by the CRA that will require the grantee to certify how the funds were expended. Supporting documentation will include invoices, receipts, or proof of payment. If the grantee fails to submit timely reports, the following will occur:

    a. Disqualification from participating in the CRA’s Social Equity Grant Program in the future.
    b. Removal from the CRA’s Social Equity Program, including becoming ineligible for all license discounts and all other benefits associated with the CRA’s Social Equity Program.
    c. Removal from the CRA’s Social Equity All-Star Program.

  • If approved for the Social Equity Grant Program, the Department of Licensing and Regulatory Affairs, Cannabis Regulatory Agency may publish the entity’s FY 2025 Grant Application, Mid-Term Status Report, Final Report, and all supporting documentation publicly to the CRA website.

  • The Social Equity Grant Program was made possible because funds were allocated by the Michigan Legislature. The state’s budget is determined on an annual basis. Funds will need to be allocated by the Michigan Legislature for the program to continue after the fiscal year, which ends September 30th each year.

    If you have additional questions regarding the Social Equity Grant Program, please send an email to CRA-SEGrants@michigan.gov.

  • Please visit the CRA Social Equity Program webpage, here, for information regarding the program including eligibility criteria, application instructions, and online and paper version of the Social Equity Program application.

    If you have additional questions regarding the Social Equity Program, please send an email to CRA-SocialEquity@michigan.gov or call us at 517-284-8599 with any questions that you may have.

     

  • Please visit the CRA Social Equity All-Star Program webpage, here, for information regarding the program including eligibility criteria, application instructions, and a current listing of CRA Social Equity All-Star Program participants.

    The Social Equity All-Star Program FAQs can be found here.

    If you have additional questions regarding the Social Equity All-Star Program, please send an email to CRA-SocialEquity@michigan.gov with any questions that you may have.

  • Please send an email to CRA-SEGrants@michigan.gov with any questions that you may have.

  • Please send an email to CRA-SEGrants@michigan.gov with any feedback that you may have. Please be certain to indicate if you would like to be contacted back about your feedback or concerns.