On April 20th, 2021, the City of Los Angeles established the SEED Grant Program to provide $6 million in financial assistance to verified Social Equity Individual (“SEI”) Applicants. The deadline for SEI Applicants to submit an application is August 18th, 2021. Funds will be disbursed on a first come, first served basis.
Here’s what you need to know…
WHAT IS THE SEED GRANT?
The SEED Grant Program is an effort to address the need for capital to go directly into the hands of individuals most impacted by cannabis prohibition and its enforcement. The SEED Grant Program utilizes funding from the 2019 and 2020 Cannabis Equity Grant for Local Jurisdictions (“CEG Grant”) to provide financial assistance to verified SEI Applicants. The SEED Grant is administered by the Department of Cannabis Regulation (“DCR”) in partnership with Elevate Impact Los Angeles.
WHO IS ELIGIBLE FOR RECEIVING A GRANT?
The program is divided into two phases: SEED 1.0 and SEED 2.0.
SEED 1.0 utilizes $5 million in funding from the CEG Grant to provide eligible Phase 3 Retail Round 1 SEI Applicants with financial grants of $25,000. To be eligible, applicants must apply within 120 days of the opening of the SEED 1.0 application period.
SEED 2.0 utilizes the remaining $1 million in funding from the CEG Grant to provide verified SEI Applicants with financial grants of $10,000 available in two disbursements upon meeting the following licensing milestones: (1) $5,000 when DCR deems the Pre-Application eligible for further processing; and (2) $5,000 when the SEI Applicant is eligible for a Notice of Local Compliance Underway. To be eligible, applicants must apply within 120 days of the opening of the SEED 1.0 application period.
Applicants who apply for a SEED 1.0 Grant are not eligible for a SEED 2.0 Grant. Applicants who apply for a SEED 2.0 Grant are not eligible for a SEED 1.0 Grant. Any remaining grant funds not awarded by 90 days prior to the end of the City of Los Angeles’s Agreement with the State of California regarding the CEG may be disbursed on a pro rata basis to SEI Applicants who applied for the SEED Grant 2.0 by August 18th, 2021.
HOW DO I APPLY?
- APPLY: Register for an account at www.ElevateImpactLA.com and complete the application online. Paper applications will not be accepted.
SEED Grant Applicants must provide the following information and upload grant assessment documents to their online grant application:
- ACA Reference Number
- Written Narrative of how funds will be used
- Budget or line-item list of expenditures for the requested grant amount
- Business Executive Summary (3-5 pgs.)
- Monthly Expense Projections for 12-month period
- APPLICATION REVIEW: The SEED Grant Application will be reviewed to ensure that the required grant assessment documents have been provided and that the documents are up to date, have not expired, and are in compliance.
- GRANT APPROVAL: If the Grant Application is approved, the Grant Applicant will become an “Approved Applicant” and will receive an email saying that the application has been approved and will be sent for grant closing. If the Grant Application is not approved, the Grant Applicant will be contacted to explain any deficiencies in their application and resubmit the Grant Application to cure any deficiencies.
- VIRTUAL SIGNING: Approved Applicants will electronically execute a Grant Agreement with the City of Los Angeles and attach any required documents as outlined in the Grant Agreement.
- GRANT DISBURSEMENT: Approved Applicants will be required to set up a financial services account at ElevateImpactFunds.com to receive the funds.
- POST GRANT DISBURSEMENT: Grant recipients will be required to provide receipts to Elevate Impact LA detailing actual grant expenditures.
DCR and Elevate Impact LA are hosting a SEED Grant Program Lunch and Learn webinar on July 29th to walk participants through each step of the application, provide feedback on grant assessment documents, and answer questions. The registration link for the Lunch and Learn webinar can be found here. Past Lunch and Learn webinars can be viewed here.
FOR YOUR CONVENIENCE…
We have put together a quick list that will help guide interested applicants in the process.
- DCR SEED Grant Program: https://cannabis.lacity.org/social-equity-program/program-benefit-and-resources/seed-grant-program
- Application Process Overview: https://elevateimpactla.com/how-to-apply/
- Apply for SEED 1.0: https://elevateimpactla.com/apply-now/apply-for-seed-1-0/
- Apply for SEED 2.0: https://elevateimpactla.com/apply-now/apply-for-seed-2-0/
For any questions regarding the SEED Grant Program, eligibility for Grant funding, and assistance with applying, please reach out to KVK’s cannabis team for assistance.
By: Zoe Louie and Nellie Niakossary, July 23, 2021