Are you a social equity applicant interested in applying for a loan to finance your cannabis business? Our online loan application is now live. We have put together this FAQ to help you understand the loan application requirements.
Q: If I already filled out your online form, do I also have to apply for the loan?
A: Yes. In order for us to understand whether you meet our credit standards, you must complete our full online loan application. It takes minutes!
Q: How long will it take to receive an answer?
A: You will receive a rejection or provisional approval immediately upon submitting your application. After that point, your application will need to be manually validated, a process that typically takes 1-2 weeks. If you are approved, you will receive the loan and letter of credit after we have validated your information.
Q: What if I am not applying for a dispensary license? Can I still apply for a loan and letter of credit?
A: Yes you can. While we are prioritizing dispensary applications due January 2, 2020, we are also building a pipeline of people who will apply for the craft-grow, infuser or transporter licenses due March 31, 2020.
Q: If I am not applying for a dispensary license, when is that loan application due?
A: We are accepting applications for financing on a rolling basis and will extend financing to those who meet our requirements on a first come, first serve basis. We anticipate financing both dispensary and non-dispensary license applicants. All non-dispensary license applications will be published by the Illinois Department of Agriculture on January 1, 2019 and are due March 31, 2020. Please direct questions regarding those application types to the Department of Agriculture.
Q: We do not need assistance with the fee. Can we still fill out an application for a loan in case we are approved for a license?
A: Everyone has to complete an application to be considered for the application fee and/or letter of credit. If you do not need the application fee financing, we are happy to evaluate you for a letter of credit only.
Q: What is acceptable collateral?
A: Residential or commercial real estate, your bank accounts (e.g. savings account or certificate of deposit) or investment accounts, equipment & machinery.
Q: How will we know our application material is secure upon sending to Good Tree Capital?
A: Your application is for our loan evaluation purposes only. We want to support the applicants who have worked the hardest to put together a great application and the only way to know is to ask you for a copy of your application. We are committed to your privacy and will not disclose your application to any 3rd parties.
Q: Should we include personal income details for all members of our LLC? What other financial information should we provide for the dispensary?
A: Only one member of your organization will be able to apply on behalf of your organization. The applying member must be a majority owner or officer with the authority to apply for financing on behalf of the entity. We recognize that this is not ideal. We are working hard to add functionality in the future that allows for multiple members to apply for the loan. We will communicate the documentation needed once you are provisionally approved for financing.
Q: Should we include credit score and history for all members of our LLC?
A: Same as above.
Q: Are you able to tell us your threshold for how much and/or what parts of the application you would like to see completed by the time of application?
A: We are primarily focused on the following scored elements of the application:
- Employee training plan (15 points)
- Security and Record Keeping (65 points)
- Business Plan, Financials, Operating Plan, and Floor Plan (65 Points)
- Knowledge and Experience in Cannabis or Related Fields (30 Points)
- Status as a Social Equity Applicant (50 points)
- Labor and Employment Practices (5 points)
- Environmental Plan (5 points )
- Illinois Owner (5 points)
- Status as a Veteran (5 points)
- Diversity Plan (5 points)