Loan Use of Proceeds

Eligible Use of Proceeds includes reasonable expenses incurred to launch and operate the Borrower’s Cannabis Business. Such items shall include, but shall not necessarily be limited to, the following:  

• Accounting fees

• Architect fees

• Bookkeeping systems and fees

• Branding (name, logo)

• Bringing space into compliance with local building codes and regulations       

• Conditional Use Permit•Consultants

• Equipment & furniture

• Event permits

• Insurance

• Inventory 

• IT and Website

• Legal Fees related to business formation or operation

• Maintenance/upgrades

• Marketing and Advertising

• Rent/lease payment     

• Point of Sale SystemPackaging

• Staff and Contractors

• State license fees

• Structural engineer


Ineligible Use of Proceeds includes, but may not be limited to, the following

• Operating an unlicensed cannabis business

• Buying cannabis or cannabis-related products from unregulated suppliers

• Relending or investing

• Expenses for a business that does not require a City of Sacramento cannabis permit

• Personal expenses or the acquisition of personal property such as cars, homes, etc. 

• Payments or distributions from borrower to its principals, partners, members, investors, or employees other than for ordinary compensation for services rendered

• Refinancing existing debt      

• Legal fees related to administrative or civil penalties or criminal charges      

• Payment of administrative or civil penalties