Bulletin 2026-02: Cannabis Grants (2026)

Grant Eligibility Category #1 – Flexible Grants

To be eligible for flexible grants, applicants must meet the following eligibility criteria, adopted by OOC in coordination with the Cannabis Oversight Committee, as of January, 30, 2026:

1. The applicant must at all times be an Equity Applicant, and must at all times have a Cannabis Business Permit or have a Cannabis Business Permit application submitted to OOC without disqualifying factors;
2. The Equity Applicant must own at least 51% of the corporate Applicant connected with their Cannabis Business Permit application;
3. The Equity Applicant’s Cannabis Business Permit application must have been formally referred to the Planning Department and have a status of Build-out or Approved.
4. The Equity Applicant must have a record of compliance with requirements of prior OOC grants.

Grant awards must be used to support the Cannabis Business Permit application that meets the above criteria. An Equity Applicant that has multiple applications eligible for flexible grants will receive no more than one grant award.

Eligible Expenses for Flexible Grants (Grant Category #1)

Grant Eligibility for Category #2 – License Fees

To be eligible for a license fee grant, applicants must meet the following eligibility criteria, adopted by OOC in coordination with the Cannabis Oversight Committee:

1. The applicant must have a valid Cannabis Business Permit without disqualifying factors;
2. The Equity Applicant must own at least 40% of their Cannabis Business Permittee;
3. The Equity Applicant’s Cannabis Business and/or its agents must have incurred and paid for its Cannabis Business Permit’s annual license fee in fiscal year 2025 – 2026.
4. The Equity Applicant must have a record of compliance with requirements of prior OOC grants.

An Equity Applicant that is eligible for both grant categories should apply for Category #1, Flexible Grants. An Equity Applicant that is an owner of multiple Cannabis Business Permit applicants and/or permittees is restricted to only one Category #1 grant across all businesses, but may apply for multiple Category #2 grants, if eligible.

Eligible Expense for License Fee Grants (Category #2)

1. Cannabis Business Permit annual license fee incurred and paid in fiscal year 2025 - 2026

Award Notification (Letter of Intent)

The OOC will circulate an award notification to eligible applicants. Applicants will then be required to notify the OOC in writing no later than February 20, 2026 of their intent to move forward. After receiving notification from an applicant, OOC will provide the applicant with a link to fill out the grant application.

If an applicant believes they are eligible for this grant, but are not contacted by the OOC with an award notification by February 02, 2026, then the applicant must email the OOC by February 06, 2026 attaching documentation demonstrating eligibility.

Documentation Requirements

Grantees must enter into a Grant Agreement with OOC. To receive grant funds, grantees must submit to OOC a request for reimbursement that lists past expenditures eligible for reimbursement under the Grant Agreement, and that includes required documentation. OOC will disburse funds after reviewing a submitted request for reimbursement and supporting documentation, upon a determination that the identified expenditures are eligible for reimbursement under the Grant Agreement.

Grantees must maintain accurate files and records regarding expenditures reimbursed through grant funds for at least seven years after final payment and provide these records to the City immediately upon request. Other requirements regarding documentation are detailed in the Grant Agreement.

Grant Eligibility for Redistribution

The term of all grants awarded in either category will expire October 24, 2026. Expenses eligible for reimbursement will be limited to those incurred on or before June 30, 2026. Subsequently, the OOC may conduct a redistribution effort, which would involve redistributing unexpended direct grant funds to eligible grantees.

To be eligible for grant redistribution, a prospective grantee must have met the initial Category #1 grant eligibility criteria, maintain business compliance with the Treasurer and Tax collector, and demonstrate that 70% of their grant award was expended by June 30, 2026.

If OOC undertakes a redistribution effort, OOC will circulate information for redistribution funds at a later date. The subsequent eligible expense period will expire October 24, 2026.

Additional Information:

Grant awards may be subject to local, state, and federal taxes. The OOC is not able to advise on tax issues and strongly encourages grantees to consult tax professionals. Free or reduced fee technical assistance/legal assistance may be available through the Bar Association of San Francisco at no charge.

Disqualifying factors from grants may include, but are not limited to, the following: permit suspension, permit revocation, outstanding compliance matters associated with prior or ongoing grant awards.

If grant funds are not expended by the applicable deadline or are used for ineligible expenses, then the grantee must return those funds to the City and County of San Francisco by the end of the grant term or risk enforcement consequences. Enforcement consequences may include, but are not limited to: civil penalties, criminal penalties, permit suspension or revocation, and/or disqualification from future grant opportunities.