Scoring Criteria for Cannabis Dispensing Applications
The Illinois Department of Financial and Professional Regulation (IDFPR) uses the following criteria to score applications for new cannabis dispensing organizations. A total of 250 points are available, with 50 points (20%) designated for “social equity applicants.” The remaining points are allocated as follows:
65 points:
Security and record-keeping
65 points:
Business plan, financials, operating and floor plan
30 points:
Knowledge and experience
15 points:
Suitability of employee training plan
5 points:
Labor and employment practices
5 points:
Environmental plan
5 points:
Illinois owner (51% or more ownership)
5 points:
Status as a veteran (51% or more ownership)
5 points:
Diversity plan
The IDFPR may also award up to 2 bonus points for a community engagement plan specific to the applicant’s location.
The Illinois Department of Agriculture will establish a similar scoring system for applications for cultivation centers, infusers, craft growers, and transport organizations. Each application type will allocate 20% of the total points to “social equity applicants.”
Get Your Records in Order
To ensure a smooth application process, have the following documents prepared:
Historical Financials
Tax Returns
Projections
Organization Structure
Ownership Structure
Owner Background
Licenses
Banking Suggestions for Cannabis Firms
Cannabis businesses face unique banking challenges. Here are some suggestions to navigate them effectively:
Utilize Professional Advisors:
Engage experts in cannabis business regulations and compliance.
Raise Sufficient Capital:
Ensure you have more than enough funds to cover expenses.
Structure to Isolate Risk:
Use a robust organizational structure to mitigate risks.
Segregate Banking:
Keep cannabis-related finances separate from non-cannabis finances.
Use a Banking Network:
Work with a network of banks experienced in cannabis businesses.
Vet Your Bank:
Choose banks that understand and support the cannabis industry.
Engage Your Network:
Collaborate with customers and suppliers for financial support.
Keep Your Banker Happy:
Maintain a good relationship with your banking institution.
Merchant Accounts:
Set up reliable merchant accounts for transactions.
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