EOED is proposing to contract with MDFA through FY30 to administer a lending program funded annually by a portion of the transfer of funds received by the Cannabis Social Equity Trust Fund (“CSETF”), established by section 14A of chapter 94G of the General Laws. EOED expects the FY25 transfer will be approximately $29,000,000. CSETF was created to provide financial assistance to encourage the full participation in the Commonwealth’s regulated marijuana industry of entrepreneurs from communities that have been disproportionately harmed by marijuana prohibition and enforcement. Pursuant to section 14A of chapter 94G of the General Laws, CSETF is authorized to make loans or grants in furtherance of this purpose. Businesses eligible to receive financial assistance from the CSETF include marijuana establishments that: (1) are designated as an Economic Empowerment Priority Applicant by the CCC; or (2) has a majority of ownership designated by the CCC as Economic Empowerment Priority Applicants; or (3) has a majority of ownership designated by the CCC as Social Equity Program Participants. MDFA was established by Chapter 23G of the General Laws as a public instrumentality with the power to administer loans for economic development projects among other powers. MDFA will administer a lending program to help eligible businesses owned by entrepreneurs disproportionately harmed by marijuana prohibition and enforcement overcome barriers to access capital, foster diversity in the cannabis industry, and encourage targeted economic growth in the cannabis industry and communities where such businesses are located. EOED is posting this Notice rather than conducting a full procurement because EOED believes this opportunity represents best value to the Commonwealth and is utilizing this Due Diligence Posting to ensure that the process is open, fair and competitive.
