The Cannabis Regulation Oversight Office (CROO) compiled and released Illinois’ Annual Cannabis Report for Fiscal Year 2025. The 144-page report incorporates data from several state departments. This article highlights the Department of Commerce and Economic Opportunity (DCEO) portion of the report.

The DCEO leads two central components of Illinois’ Cannabis Social Equity Program: The Cannabis Social Equity Loan Program and the Cannabis Social Equity Technical Assistance (TA) Program. Through the Cannabis Social Equity Loan Program, funded via the Cannabis Business Development Fund (CBDF), DCEO has awarded over $22.6 million in Direct Forgivable Loans (DFLs) to support qualified social equity dispensary, craft grower, infuser, and transporter licensees across the state.

– In Round 1, DCEO disbursed $18.3 million to support 33 social equity loan recipients, including craft growers, infusers, and transporters. Notably, 80% of these loans were awarded to Minority- and Women-Owned Business Enterprises (M/WBEs), representing approximately 84% of the total loan dollars awarded in that round.

– For Round 2, DCEO has disbursed $4.32 million to 18 social equity loan applicants (adult-use dispensing organizations). These applicants were selected based on criteria including social equity status, financial need, financial resources, and progress toward operational readiness.

– On August 11, 2025, DCEO launched Round 3 of the DFL Program, allocating up to $40 million to support all social equity license types, including adult-use dispensing organizations, craft growers, infusers, and transporters. The application window will close on Thursday, September 25, 2025. DCEO is currently hosting informational webinars and technical assistance sessions to support applicants and stakeholders during the application period.

In 2026, DCEO will issue Round 2 of the Cannabis Social Equity Technical Assistance (TA) Program, prioritizing post-license support for qualified Social Equity Applicants (SEAs) across Illinois. This round of TA will be structured to deliver targeted, high-impact training, legal services, and operational guidance to help SEAs successfully launch, operate, and sustain compliant cannabis business establishments. By building capacity in key areas such as regulatory compliance, financial readiness, and business planning, this TA round will provide access to the tools and resources needed for SEAs to compete and grow in Illinois’ regulated cannabis industry.

DCEO FY2026 goals include:

1. Shorten the intake processing time for Round 3 DFL applications to improve efficiency.
2. Reduce the turnaround time between the application close and award notification for Round 3 DFL applications.
3. Continue to increase staffing within OE3 to support the expanding cannabis programs.

DCEO FY2026 essential projects include:

1. Deploy funding to all DFL Round 3 loan recipients.
2. Release Cannabis TA Program NOFO, emphasizing support for social equity licensees.
3. Develop a strategic plan to provide ongoing support for social equity applicants.

DCEO FY2026 Metric goals include:

-Secure Technical Assistance for all social equity licensees

-Deploy funding to all Round 3 DFL loan recipients

-Increase the number of DFL loans by 10%-20%

For more Illinois cannabis industry news, subscribe to Illinois News Joint’s newsletter here.

For Illinois News Joint reviews, visit here.

To find cannabis-friendly events in Illinois, visit here.