The Illinois Department of Commerce and Economic Opportunity (DCEO) today released “FAQs” updates for Round 3 of the Cannabis Direct Forgivable Loan Program for Craft Growers, Infusers, Transporters, and Adult-Use Dispensing Organizations. DCEO is allocating approximately $40 million for this round of the program. Interested businesses should review the complete FAQs updates here.

The size and number of loans to be issued depends on the number of eligible applicants, but DCEO anticipates providing loans with a principal amount as follows:

1. Craft Growers: up to $750,000
2. Infusers: up to $245,000
3. Adult-Use Dispensing Organizations: up to $245,000
4. Transporters: up to $50,000

Only Qualified Social Equity Applicants that have been awarded licenses by either the Illinois Department of Agriculture (IDOA) or the Illinois Department of Financial and Professional Regulation (IDFPR) are eligible. Qualified Social Equity Applicants who have a Craft Grower, Infuser, and/or Transporter License from IDOA, or Adult-Use Dispensing Organization License from IDFPR will have until Thursday, September 25, 2025, at 5 p.m. CDT to apply for loan funds. DCEO will review applications for completeness as they are received and will provide applicants an opportunity to correct any deficiencies.

The forgivable loan has an initial 18-month grace period. During the grace period, no payments are required, and interest does not accrue. Once the grace period passes, interest begins to accrue at 4% and shall be repaid monthly over a 5-year term. The loan will mature 5 years after the end of the 18 -month grace period (i.e., licensees have 6.5 years before they must repay the loan principal). All outstanding principal and all accrued and unpaid interest shall be due, if not paid sooner, on the Maturity Date.

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