Thousands of entrepreneurs across Michigan dream of owning and operating their very own State-licensed cannabis facility.
Whether it be producing unique, high quality strains with a State Grower license or offering craft cannabis products to the public with a State Microbusiness license, the obstacles to achieving these goals are fewer than ever.
For both existing Michigan Caregivers and entrepreneurs seeking to enter the State's cannabis industry for the first time, the time has never been better to obtain State licensing.
Here are three reasons why hopeful State operators should stop waiting to start their cannabis business:
1. Reduced State Licensing Fees
For starters, Michigan's State licensing fees are lower than they've ever been.
Back in March, the CRA [Cannabis Regulatory Agency; formerly the MRA] made substantial cuts to almost all State licensing fees, making it more affordable than ever for hopeful cannabis operators to obtain licensing.
The updated license fees are as follows:
Class A Grower: $1,200 [from $4,000]
Class B Grower: $6,000 [from $8,000]
Class C Grower: $24,000 [from $40,000]
Retailer: $15,000 [from $25,000]
Processor: $24,000 [from $40,000]
Secure Transporter: $15,000 [from $25,000]
Microbusiness: $8,300 [from $8,000]
In addition to reducing State licensing fees, the CRA also reduced its initial prequalification application fee from $6,000 to $3,000.
As a result, new cannabis licensees can expect to pay between $5,000 to $19,000 less than they would have had they applied just a few months ago.
2. New Markets Opting-In
The most difficult and time-consuming part of the cannabis licensing process is municipal licensing. This is because you must find a city that not only is opted-in for cannabis and has licenses available, but that also presents a good target market for your proposed business type.
While some requirements are set on the State level, cities and townships in Michigan have virtually full control over regulating cannabis businesses within their boundaries.
The vast majority of these cities and townships have yet to opt-in to MRTMA [Michigan Regulation and Taxation of Marihuana Act] since its passage in 2019, leaving hundreds of untapped markets across the state.
Many of these municipalities have until now been waiting to see results from other cities that have opted-in and to gauge how their constituents feel about cannabis before proceeding with an opt-in ordinance.
As Michigan's adult-use industry progresses through its fourth year, and cannabis sales in the State continue to break records, cities across Michigan are slowly but surely starting to opt-in to MRTMA, creating a constant stream of newly emerging markets for cannabis operators to take advantage of.
3. Accessibility to Funding
While cannabis remains a gray area when it comes to federally-insured banks [due to federal prohibition], many local banks and private lenders have begun opening their doors to cannabis businesses.
These banks and lenders provide numerous services including customized cannabis banking packages and commercial loans for entrepreneurs seeking to open a state-licensed facility.
Additionally, the pool of local investors seeking to invest in new cannabis businesses is larger than ever, giving cannabis entrepreneurs access to an additional stream of prospective financing.
This growing number of options provides new cannabis operators with better accessibility than ever to obtain funding for their project.
Interested in Obtaining a Cannabis License?
If you are interested in learning more about the cannabis licensing process, please contact our team of expert consultants to schedule a free consultation.
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