Are you considering starting a cannabis microbusiness in Minnesota? With the state’s recent legalization of recreational cannabis and updates to its licensing process, now is the perfect time to understand the requirements and position yourself for success. The recent decision by the Office of Cannabis Management (OCM) to transition to a standard licensing cycle has created new opportunities for both social equity and general applicants.
This guide provides a comprehensive overview of the approved activities, relevant regulations, application requirements, fees, and updated licensing process.
Cannabis Microbusiness License in Minnesota
What is a cannabis microbusiness in Minnesota?
Well, a cannabis microbusiness license in Minnesota permits you to conduct the following activities:
- Cultivation: Growing cannabis plants up to 5,000 square feet indoors or a half-acre outdoors.
- Manufacturing: Making concentrates and other products from cannabis and hemp plants.
- Retail Sales: Selling cannabis products, including flower and edibles, directly to consumers.
- On-Premises Consumption: Allowing the consumption of edibles on the business premises (after final rules are adopted).
This flexibility makes microbusiness licenses an excellent opportunity for entrepreneurs seeking to manage multiple operations under one license.
Number of Cannabis Microbusiness Licenses Available
There is currently no cap on the total number of cannabis microbusiness licenses Minnesota will issue. However, specific license types subject to statutory caps will be allocated via a lottery (not including microbusinesses).
Relevant Regulations for Minnesota Cannabis Microbusiness Licenses
The Office of Cannabis Management (OCM) oversees Minnesota’s cannabis industry, enforcing strict regulations to ensure safety, equity, and compliance. Key regulations for microbusiness licenses include:
- Social Equity Requirements: At least 65% ownership by verified social equity applicants (click here to learn more about Minnesota’s social equity verification process).
- Security Measures: Detailed security plans to prevent unlawful diversion.
- Compliance with State Laws: Adherence to Minnesota Statutes Chapter 342 and other relevant laws.
How to Apply for a Minnesota Cannabis Microbusiness License
Below our Minnesota cannabis consultants summarize how to apply for a cannabis microbusiness license:
Step 1: Verify Social Equity Status
- Opens: January 15, 2025
- Closes: January 30, 2025 Social equity applicants must verify eligibility by providing documentation, such as proof of residence in disproportionately impacted areas or evidence of cannabis-related convictions.
Step 2: Submit License Application
- Opens: February 18, 2025
- Closes: March 14, 2025 Applicants must submit detailed documentation, including:
- Ownership disclosure forms.
- Capitalization and financial readiness reports
- Business and operations plans tailored to microbusiness requirements.
- Preliminary security and ESG plans.
Unlike other licenses, Minnesota cannabis microbusinesses are not subject to a lottery because there is no cap on the number of licenses issued. This means that qualified applicants will be granted a license once they meet all requirements.
Step 3: Final Steps to Obtain a License
📅 March – April 2025 (Rolling Review Process)
Since microbusiness licenses are uncapped, applications will be reviewed on a rolling basis rather than through a lottery system. This means:
- ✔ Applications will be processed in order of submission.
- ✔ The earlier you apply, the sooner you can receive approval.
Upon approval, you can begin your final pre-license steps, including:
- Securing zoning approvals & site registration
- Submitting a labor peace agreement
- Passing a background check & final inspection
Once the final rules are adopted (expected by March 2025), approved microbusiness applicants will be able to receive their licenses and begin operations!
Application Requirements for Minnesota Cannabis Microbusiness License
To apply for a cannabis microbusiness license in Minnesota, you need to prepare several documents, including:
- Disclosure of Ownership and Control (PDF)
- Capitalization Table (.xls(s))
- Preliminary Security Plan (PDF)
- Preliminary Business Plan (PDF)
- Attestation of Labor Peace Agreement (PDF)
- Preliminary Training and Educational Plan for Employees (PDF)
- Preliminary SOP Quality Assurance (PDF)
- Preliminary SOP Inventory Control, Storage, and Diversion Prevention (PDF)
- Preliminary SOP Accounting and Tax Compliance (PDF)
- Preliminary Operation Plan – Microbusiness or Mezzobusiness (PDF)
- Preliminary Operation Plan – Medical Cannabis Combination Business
- Cultivation Plan (PDF) (mandatory for cultivation license applications or micro/mezzo licenses seeking a cultivation endorsement)
Fees
The fees associated with obtaining a Minnesota cannabis microbusiness license include:
- Application Fee: $500
- Initial License Fee: No initial license fee
- Renewal License Fee: $2,000 annually
Closing Remarks
Securing a cannabis microbusiness license in Minnesota can be a complex process, but it offers a significant opportunity for small businesses to enter the cannabis market. By following the outlined steps and ensuring compliance with all requirements, you can position your business for success.
For more detailed guidance and assistance, consider engaging with experienced cannabis consultants like Quantum 9.
