MICROBUSINESSES & THE MISSOURI CANNABIS INDUSTRY
In Nov. 2022, voters went to the polls and by a margin of more than 127,000 votes made Missouri the 21st state to legalize cannabis and the first state to automatically expunge past, nonviolent marijuana offenses by a vote of the people. Additionally, the new constitutional amendment also created a pathway for more Missourians to get into the cannabis industry through the microbusiness license program.
As the voice of trade for Missouri cannabis, MoCannTrade is creating programming to help inform, prepare and connect microbusiness applicants and operators with business contacts, supply chain and service provider resources, virtual and in person event programming. This is the same approach we took when working to prepare Missouri’s existing commercial cannabis operators prior to both Amendment 2 and Amendment 3 passage. Our hope is to again address the needs of Missourians interested in applying or operating Microbusiness Licenses and helping to serve the needs of Missouri cannabis patients and consumers.
WHAT IS A MICROBUSINESS FACILITY?
A microbusiness facility refers to either a microbusiness dispensary or a microbusiness wholesale facility, both of which conduct operations related to marijuana for medical and adult use. A microbusiness is different from a medical or comprehensive facility because it is designed to provide a path to facility ownership for individuals who might not otherwise easily access that opportunity, such as those with a net worth of less than $250,000 or veterans with a service-connected disability.
In order to qualify for a microbusiness facility license, applicant entities shall be majority owned by individuals who each meet at least one of a number of qualifications set forth in the Constitution.
THE MOCANNTRADE MICROBUSINESS EXPLAINER
For more detailed information about applying for a Microbusiness, download a FREE copy of the MoCann Microbusiness Explainer PDF by clicking below:
Microbusiness FAQS
Who is eligible for a Microbusiness license?
Applicants for microbusiness licenses must be majority owned by individuals who meet one of these equity requirements:
- Has a net worth of less than $250,000 and an income below 250% of the federal poverty level for at least 3 of the 10 calendar years prior to applying
- Has a valid service-connected disability card issued by the U.S. Department of Veteran Affairs
- Is a person who has been, or a parent, guardian, or spouse of a person who has been arrested for, prosecuted for, or convicted of a non-violent marijuana offense unless the offense involved selling marijuana to a minor or driving under the influence
- Reside in a zip code or census tract where:
- 30% or more of the population lives below the federal poverty level
- The rate of unemployment is 50% higher than the state average
- The historic rate of incarceration for marijuana-related offenses is 50% higher than the rate for the entire state
- Graduated from a school district unaccredited at the time of graduation or has lived in a zip code containing an unaccredited school district for 3 of the past 5 years
How long are microbusiness licenses valid and when do they need to be renewed?
A facility license is valid for three years from the date the license was issued. Renewal requests must be submitted in a department-provided, web-based application system at least 30 days, but no sooner than 90 days, prior to expiration. These requirements apply to all licensees, including microbusinesses.
Can multiple applicants choose the same property as part of their application? If yes, what would happen if both got chosen?
Yes. In the event two eligible applicants are selected with the same proposed address, the department will review the circumstances with applicants and permit one of the applicants to change location within the congressional district.
Is proof of Missouri residency a requirement?
No. There is no residency requirement in order to apply for a microbusiness application.
How will I know if my application is complete and eligible or if the department determines that additional information is required?
If your application is near the top of the list resulting from the lottery, the Department may request additional information or documents needed to determine eligibility for a license by sending the request to the email address of the designated contact associated with the application. If requested, the applicant will have three business days to provide the requested information or documents.
If my application is denied, can I apply again?
Yes, applications not chosen by lottery will result in the application being denied. Those applicants may choose to submit a new application during the next application submission time period.
Can I submit multiple microbusiness applications to improve my chances in the lottery?
No. The regulations are clear that an entity may apply to the Department for and obtain only one license to operate a marijuana microbusiness facility, which may be either a microbusiness dispensary facility or a microbusiness wholesale facility. This means that an individual or entity may only be listed on one application, regardless of the amount of ownership interests. This limitation ensures everyone who applies has an equal chance at a license. If an individual or entity appears on multiple applications, all applications in which the individual or entity appears will be in violation of the rule and will be denied.
Who can I contact if I have questions about eligibility, documents, or if I have trouble submitting my application?
For any outstanding questions please reach out to the Facility Application Services Unit at CannabisFAS@health.mo.gov. If your questions need to be directed to a different section within the Division, the FAS Unit will forward to the appropriate person.
Is the congressional district based on the residential address of the applicant or the address of the proposed microbusiness facility?
Applicants must choose the congressional district where their microbusiness facility will be located. Applicants are not required to reside in the same congressional district as the proposed facility address.
If my application was among the first drawn applications in a congressional district, does that mean I am guaranteed a license?
No. The Department will not be able to announce which applicants will be awarded a microbusiness license until each application has been reviewed to determine if the applicant has satisfied all application criteria to receive a license. The drawing list for each congressional district is the order that applications will be reviewed. An application that was one of the first drawn applications may not be awarded a microbusiness license for a number of reasons, such as:
- The proposed facility location is too close to an existing school, church, or daycare.
- The application does not demonstrate the applicant is majority owned by eligible individuals.
- An individual or applicant appears on more than one microbusiness application.
- The application is in violation of a rule or Article XIV.
- This is not a complete list of reasons why a drawn application may not be awarded a license.
Are there any classes or training available to help me apply?
DCR’s Chief Equity Officer is responsible for establishing public education programming and technical assistance for communities disproportionately impacted by cannabis prohibition and providing information and resources to help individuals apply for a microbusiness license. Activities include outreach forums, informational events, webinars, digital content, tutorials, printable guides, and checklists. Please visit the Outreach and Education page for information on available events.
Additionally, a Pre-Application Technical Assistance Program is available and must be completed by at least one eligible individual contributing to majority ownership listed on each application. This pre-application training covers the following: unconscionable business practices, expectations for owning and operating a microbusiness, funding and investment options and rule compliance expectations.
How many microbusiness licenses are being issued?
DHSS licensed 48 microbusiness facilities in October 2023 during the first round of licensing. Following the revocation of licenses that did not meet basic program requirements, the department issued an additional 57 licenses in July 2024. In round 3, DHSS plans to issue at least 77 licenses, bringing the total number of microbusiness licenses up to the constitutional minimum of 144 microbusiness licenses.
MICROBUSINESS FACILITY MEMBERSHIP OVERVIEW
MoCannTrade is currently offering a Microbusiness Membership Scholarship for all licensed microbusiness facilities, providing complimentary membership through January 1, 2027. This scholarship ensures microbusiness licensees have full access to the same benefits, resources, and industry connections as other commercial members during this critical stage of growth and market entry. Contact associate.director@mocanntrade.org for more information or member support.
Beginning January 2027, MoCannTrade will resume standard Microbusiness Membership dues at a permanently reduced rate of $500 annually. This rate applies to all licensed microbusinesses and applicants seeking to maintain access to MoCann’s advocacy, education, and member benefits. See microbusiness specific member benefits below:
Microbusiness Membership
$500
ANNUAL
MoCannTrade Microbusiness members gain important access to industry networking, knowledge share, and resources to support their potential cannabis business in Missouri INCLUDING these member benefits:
- Industry lobbying: In the last five legislative sessions, 100% success defending the Amendment 2 & 3 / Article XIV program from detrimental legislation.
- Eligibility to nominate / participate in board of directors, advisory boards and industry committees
- Bi-Weekly industry, policy, regulatory and program informational updates via MoCannTrade newsletter
- Unified representation for all industry, program, state legislative or relevant government matters
- Business listing (once licensed) and access to our member directory, the Yellow Pages of Missouri cannabis
- Passive participation in MoCannTrade stakeholder meetings/calls
- Team attendance at all virtual or in-person Member Meetups (limit 4 per in person event)
- Access to member’s only industry, education and online resource library
- Access to MoCannTrade member logo assets
- Free job postings on our industry job board
- Free “Industry Insider” digital subscription to Greenway Magazine
- Direct referral and social media spotlight of licensed business to industry
- Company/product logo and web link on website and eblasts footer
- Discounted tickets and exhibit presence for MoCannTrade conference, industry or lobbying events