The Division is working through an already existing direct grant queue of equity applicants. At this time, the Division does not anticipate opening additional direct grant application windows until all verified equity applicants in the existing queue are awarded funding (up to $50,000.00 per direct grant award, per applicant). For applicants who have submitted a previous application, when and if the Division begins to process your direct grant application, you will receive an email from cannabisprogram@mendocinocounty.gov with further instructions.
Verified equity eligible applicants in the existing queue may be eligible for direct grant funds for the purposes of startup and ongoing business expenses. Direct Grant expenses include, but may not be limited to, the following:
1. Grants for purposes of conducting business as a licensed cannabis operator and assuring compliance with regulatory requirements of local or state permits or licenses. This includes categories such as regulatory compliance, capital improvement, and fixtures or equipment for any licensed cannabis activities, whether currently licensed or as applied for before or as a result of grant funding including, but not limited to:
- Water storage for cannabis businesses;
- Remediation and relocation of cannabis cultivation sites to an environmentally superior location;
- Installation of solar electrical systems or expansion of them for cannabis operations;
- Connecting off-grid cannabis businesses operations to the power grid;
- Road remediation, watershed mitigation, and culverts or infrastructure needed to meet state or local regulations;
- Structures and equipment necessary to conduct or improve cannabis business operations.
2. Grants for the purpose of employment skills training for eligible equity participants that are employers, employed or are seeking employment in licensed cannabis operations in Mendocino County. This may include, but is not limited to, OSHA training, certification training, HR training, and job advancement training.
3. Grants for the purpose of paying the income taxes in whole or in part generated by receiving direct grant funds provided by the LEEP, the Local Jurisdiction Assistance Grant Program ("LJAGP") – Direct Grant Program, and other grant awards as approved by the Cannabis Department, or for assisting the cannabis business operator in paying any taxes incurred from the cannabis business operations (income taxes, business property taxes, and other taxes), excluding penalties or interest.
4. Grants for the purpose of paying state application and licensing fees, state application and permitting fees, and state reporting and filing fees.
5. Grants for the purpose of paying start-up and ongoing business expenses including but not limited to rent or lease, utility bills, staff salaries and hourly rates, insurance, fixtures and equipment, furniture, capital improvements, legal assistance, bookkeeping and accounting, regulatory compliance, the testing- laboratory costs of legal cannabis, and any other business expense for the cannabis business.
6. Grants for the purpose of paying for; expenses associated with marketing and branding, including but not limited to:
- Third-party certification programs;
- Appellation of origin development and program management; and
- Traditional marketing and branding programs, such as, supplies, packaging, artwork, website design or updates, or any other marketing or branding purpose.
7. Grant awardees are obligated to preserve and submit receipts for all purchases matching their budget items. Copies of receipts must be submitted via email to cannabisprogram@mendocinocounty.gov no later than four weeks following use of funds. Receipts must be retained for a minimum of four years from completion of all grant obligations.
Awardees must agree to respond to all reasonable requests by the the Cannabis Division to perform a compliance audit to demonstrate that Direct Grant awards have been used in accordance with the terms of the grant agreement.
Direct Grant awards for the purposes listed in 1 through 7 above shall not exceed $50,000 in an individual award. Additionally, awarded funds will be limited to one (1) Direct Grant award per Cannabis Business License.
Local Cannabis Business License applications that are denied, terminated, or withdrawn, or have had their Cannabis Business License revoked by the County, or an applicable State Agency will be deemed ineligible to receive CEG funding. Applicants who previously qualified under “5-Mile CAMP Raid” as a sole criterion, are deemed ineligible for CEG funding and must work with Mendocino Cannabis Department to re-certify under one of the above criteria.
If you are a LEEP Direct Grant recipient and would like to submit a budget amendment for a fully executed grant agreement, please email cannabisprogram@mendocinocounty.gov to start this process. Please note budget amendments require a full re-routing of grant agreement and will delay funding for agreements that have not yet received a check.
