Minnesota Cannabis Microbusiness License Requirements

Minnesota cannabis licensing is about to open! After having a rough start last summer and fall in 2024, 2025 is poised to create better and more numerous opportunities for cannabis entrepreneurs, especially for microbusiness applicants. Whereas last summer, most license types were limited (capped) in number, now only retailers, larger size cultivation, manufacturing and mezzobusinesses are limited. That means the only thing stopping you from getting an MN cannabis microbusiness license (which is a great license type, explained further below), is a properly zoned location, financing and a good set of application documents (our specialty). 

Last summer, the Minnesota Office of Cannabis Management (OCM) attempted their first social equity lottery qualification process, which proved to be a legal mess due to problems with applicants gaming the system and the OCM allegedly failing to fairly inform applicants of deficiencies. As of the creation of this web page, some of these issues are still tied up in court. The head of the agency has resigned and a new window opened for social equity qualification(closed as of January 31st, 2025). 

Now, the OCM is opening an application window from February 18th, 2025 until March 14th, 2025 for several groups: 1) previous social equity applicants that weren’t given sufficient information to correct deficiencies, 2) new social equity applicants, 3) general applicants for non-capped license types and 4) general applicants for lottery qualification for the capped license types. Also, many previously qualified social equity cannabis license applicants have shifted gears towards MN microbusiness licensing. 

There are two routes to obtaining applications. For the capped cannabis license types, the application window will be for a Minnesota cannabis lottery qualification. For microbusinesses, wholesalers, transporters, delivery services, event organizers and testing facilities, licenses are not limited and there is no lottery. 

For mezzobusinesses, larger cultivators, retailers (dispensaries) and manufacturers, licenses are limited and will be awarded by lottery, but you must submit paperwork to qualify for the MN cannabis license lottery to start. This type of lottery is a trend in recently legalizing states, and is referred to as a “vetted lottery”. The difficulty associated with qualifying varies from state to state, but when a “cure period” is allowed, there is no reason to be concerned. That means you will be given an opportunity to fix any problems with your submission, thereby almost ensuring you will qualify. 

The vetted lottery process was created to avoid potential litigation that had occurred in other states, where merit-based competitions had been widely perceived as unfair and skewed towards big-business interests. Of course lotteries have their own down-side, which is that highly qualified and experienced applicants often lose to complete newbies. They have also proven to be vulnerable to litigation. 

Most applicants, however, will be MN cannabis microbusiness applicants, and this process simply requires the competent submission of paperwork, starting on February 18th, 2025. 

In Minnesota, the cannabis microbusiness license (or MN microlicense) is great because it has a fairly generous canopy limit of 5000 square feet for indoor flowering canopy, or half an acre outdoors. This license type also allows licensees to manufacture cannabis products and sell them retail. Further, no one can have an ownership interest (greater than 10%) in multiple licenses, which means that big businesses can’t just stack licenses and dominate the little guys. For a grower to be able to make the markup between wholesale and retail price is a very attractive opportunity, and 5000 square feet of canopy is plenty of space to make good money. 

Minnesota cannabis microlicenses will only be limited by available properly zoned locations, not by any cap on the number of available licenses at the state level. This means each municipality will have to identify zones where these businesses can operate, and there will be a bidding war on the available spaces, so it’s important to start pinning down a location as soon as possible. Local municipalities will not be allowed to limit the number of cannabis production businesses, but they can limit the number of retail locations to no more than 1 per 12,500 residents. Consumption lounges will also be allowed and included as an option (known as an endorsement) for microbusiness and mezzobusiness operators. 

Since Minnesota microbusiness applications and licenses are not capped in number, everyone should apply for this license type. How much does it cost to get a Minnesota cannabis microbusiness license? The application fee is only $500. If you are also interested in a mezzobusiness (up to 15,000 square feet of canopy) or a full size cultivation license (up to 30,000 square feet of canopy), you can submit paperwork to qualify for those lotteries (because they ARE capped in number), but the cost is much higher. For a mezzobusiness, the non-refundable application fee is $5,000 and for the MN cannabis cultivation license, the application fee is $10,000. With such a big difference in cost and the chances of obtaining a license, the Minnesota microbusiness license is clearly the most attractive option for all but the wealthiest applicants who don’t mind losing quite a bit of money if they don’t win the MN cannabis license lottery for the larger capped license types. 

Like several other recently legalizing states, MN is using pdf forms that applicants (or consultants like us) must fill in and submit. The forms used last summer were quite extensive and unreasonable considering that there were no published regulations at the time, the information being requested was not knowable by most social equity applicants, and these forms were only published 3 weeks before a very short application window opened and closed. 

This time, the OCM has listed what they call “Preliminary” plans and procedures that will need to be uploaded, and they will provide worksheets for these plans. They are: 

The use of the word “preliminary” here leads us to believe that these will be fairly short documents, and that more extensive versions of them will be required at a later date. 

We will know more in the next few days, perhaps as soon as February 1st, 2025, when the new forms might be published. Those submitting cannabis applications in MN won’t need to worry too much about obtaining a license since there’s a cure period (where you can correct deficiencies), but the corrected paperwork DOES need to get completed and submitted in a fairly short span of time–10 business days. 

On February 1st, we will go into high gear creating 95%-complete templates of the pdf forms for Minnesota cannabis license applicants, and we will make these available to our customers who can review them before purchasing and get extra support for any sections that require customized information. 

Here is a price breakdown of the various cannabis license types in Minnesota: 

MN Cannabis Microbusiness License Cost

• application fee $500 
• no initial license fee 
• renewal license fee $2,000 

Cannabis microbusinesses can grow, make, sell, and buy cannabis (including plants and seedlings) and lower-potency hemp products. They can also have on-site lounges where customers can use cannabis.

MN Cannabis Mezzobusiness Application and License Cost

• application fee $5,000 
• initial license fee $5,000 
• renewal license fee $10,000

Cannabis mezzobusinesses can grow, make, sell, and buy cannabis (including plants and seedlings) and lower-potency hemp products. This license type is available in limited quantities, and licensees will be selected through a vetted lottery.

MN Cannabis Cultivator Application and License Cost

• application fee $10,000 
• initial license fee $20,000 
• renewal license fee $30,000

MN Cannabis Manufacturer Application and License Cost

• application fee $10,000 
• initial license fee $10,000 
• renewal license fee $20,000

Cannabis manufacturers process raw cannabis plants into various products, such as edibles, concentrates, wax, oils, and tinctures. Manufacturers can buy cannabis flowers, cannabis products, and lower-potency hemp products from other cannabis businesses. They turn these materials into cannabis products, then package and sell them to other cannabis businesses. This license type is available in limited quantities, and licensees will be selected through a vetted lottery.

MN Cannabis Retailers

• application fee $2,500 
• initial license fee $2,500 
• renewal license fee $5,000

Cannabis retailers sell packaged cannabis products to the general public and medical patients. They can buy cannabis (including plants and seedlings) and lower-potency hemp products from other cannabis businesses and sell them to customers. This license type is available in limited quantities, and licensees will be selected through a vetted lottery. A cannabis retailer may operate up to five retail locations; however, no person, cooperative, or business may hold a license to own or operate more than one cannabis retail business in one city and three retail businesses in one county.

MN Cannabis Wholesalers

• application fee $5,000 
• initial license fee $5,000 
• renewal license fee $10,000

Cannabis wholesalers buy cannabis, cannabis products, and lower-potency hemp products from cannabis businesses and then sell them to other cannabis business.

 

Cannabis cultivators can grow cannabis plants from seed to maturity. Cultivators are allowed to harvest, package, label, and transport fully grown cannabis plants to manufacturers. They can also package, label, and transport seedlings. This license type is available in limited quantities, and licensees will be selected through a vetted lottery. 

Click Here If You Would Like Us to Provide MN Application OR Lottery Qualification Documents. This Includes All Plans and Procedures They Request. (if link is not working, it’s because we are still creating the product page- stay tuned)

Even Social Equity Microbusiness operators will need to secure some significant money in order to set up and operate a successful cannabis business in Minnesota. The application and licensing fees might be low, but growing, manufacturing and selling cannabis is still complex and demanding. Indoor cultivation,  in particular, is pricey because of the lab-like environmentally controlled conditions that must exist for successful plant cultivation. 

Licensed cannabis businesses cannot be registered at residences and the local municipality usually limits zoning to agricultural land and warehouse space. This will vary from one municipality to another. Unless you are among the first to secure a properly zoned location, the prices for these highly prized facilities quickly rise, making facility acquisition one of the most costly and competitive aspects of the entire process. 

Expect to spend 10’s of thousands of dollars securing a location, then the rest of your budget depends on the size of the project. Indoor cultivation facilities can easily run from $300-$400 per square foot for buildout. Manufacturing businesses vary widely in cost due to the wide range of ways cannabis can be extracted and turned into secondary products. Dispensaries usually cost from $250k to $500k for the initial investment. We can help you with a budget and business plan if you would like to create a detailed set of planning documents. 

Getting started on your Minnesota cannabis license application might seem daunting, but breaking it down into actionable steps can ease the process. Begin by familiarizing yourself with the cannabis rules and regulations specific to MN Understanding the marijuana laws and rules is crucial for a compliant application. Next, focus on gathering the required documentation for your marijuana license application. Create an account in the online portal and start poking around to see what’s in there.

Timeliness in your MN cannabis license application process can make all the difference, so don’t delay. When you are applying for your marijuana license, ensure adherence to eligibility and local zoning requirements previously discussed. Start working on funding sources if you aren’t using your own personal savings. To reduce your stress, consult with experts like us on how to navigate the intricacies of the cannabis licensing landscape. Finally, use any and all available resources or networks to support your application journey. By following these steps, you’re paving the way for a successful launch of your cannabis business in Minnesota.

The main thing to keep in mind is that a microbusiness is the type of license to go for. It allows for 5000 square feet of indoor canopy under cultivation,  or half an acre of outdoor canopy, which is plenty of space to get started. Additionally, you can manufacture your own cannabis products and sell your own flower and manufactured products directly to consumers through your retail outlet. Going for a bigger license risks not getting one at all, since the cannabis mezzobusiness and full size cultivation licenses are capped and awarded by lottery, where microbusinesses are essentially open to anyone who can secure a location, get financing and meet the state’s paperwork requirements. 

Understanding Minnesota Cannabis Licensing

 

 

Minnesota’s cannabis licensing requirements have changed over the past several months. Last summer 2024, a vetted lottery qualification process was opened for social equity applicants, and it was controversial and resulted in lawsuits that are still pending. About 1/3 of applicants were qualified. Others are still awaiting clarification on application deficiencies, and now a new round of licensing is opening (on Feb 18th, 2025)

 

What is a vetted lottery? It’s a lottery where the applicants must qualify by submitting a set of documents showing some level of professional planning capability.

 

This time, there will be another vetted lottery, but it will only be for 4 license types: Retail, Large Cultivators (30,000 square feet indoor), Large Manufacturers and Mezzobusinesses. The other license types will not be capped in number so no lottery will be held–just a regular application process. We are waiting to hear what the document requirements for these various licensing options will be. Early February 2025 is the target date for the OCM publishing more guidance.

 

So, all in all, the MN cannabis microlicense is the most attractive option, even for those wishing to operate larger businesses. It’s very inexpensive to apply for (only $500), it allows you to grow, manufacture and sell your own cannabis and cannabis products in MN, and you can have up to 5,000 square feet of indoor, or half an acre of outdoor, canopy. You can even have a consumption lounge with a microlicense, if you can get approval from your local municipality. Even if you want a larger license type, you should apply for a microlicense because you might not win the lottery for the capped license types, but the microlicense is a shoe-in as long as you have financing, a suitable location and submit solid documentation.

 

WE CAN HELP WITH ALL DOCUMENT REQUIREMENTS!

 

Read up on the best license type: The MN Cannabis Microbusiness License (goes to our other website)

 

 

Everyone is currently awaiting more information on the length, format and specific contents the OCM will want to see in the cannabis application documents. Based on what happened last August, we expect strict page limits on pre-published pdf forms, and specific questions that will need to be answered. Because of this method, writing up the documents in advance of having specific guidance could be a waste of time.

 

Contact Us Today for More Info

 

How Many MN Cannabis Licenses Will be Available?

 

The OCM has published the following information about license caps:

 

For licenses that are available to social equity applicants, the maximum number of
licenses that the office may issue are:

 

(1) MN cultivator licenses, 19;

 

(2) MN cannabis manufacturer licenses, 12;

 

(3) MN cannabis retailer licenses, 100; and

 

(4) MN cannabis mezzobusiness licenses, 30.

 

For licenses that are available to all applicants (later), the maximum number of licenses
that the office may issue are:

 

(1) MN cannabis cultivator licenses, 19;

 

(2) MN cannabis manufacturer licenses, 12;

 

(3) MN dispensary licenses, 100; and

 

(4) MN cannabis mezzobusiness licenses, 30.

 

(h) Of the available licenses listed above, the following number of licenses
will be available for applicants that notify the office they will apply for a medical retail
endorsement and intend to serve the medical registry market for at least three years:

 

(1) cannabis mezzobusiness, six; and

 

(2) MN cannabis retailer, 20.

 

That’s not very many licenses! That means anyone who wins one will make a ton of money, even if they are relatively inexperienced.

 

What is a Cannabis Mezzobusiness?

 

 

According to the OCM:

 

A cannabis mezzobusiness license, consistent with the specific license endorsement or endorsements, entitles the license holder to perform any or all of the following within the limits established by this section:

 

(1) grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant for use as adult-use cannabis flower or for use in adult-use cannabis products;

 

(2) grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant for use as medical cannabis flower or for use in medical cannabinoid products;

 

(3) make cannabis concentrate;

 

(4) make hemp concentrate, including hemp concentrate with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight;

 

(5) manufacture artificially derived cannabinoids;

 

(6) manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for public consumption;

 

(7) process medical cannabinoid products;

 

(8) purchase immature cannabis plants and seedlings and cannabis flower from a cannabis microbusiness, another cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler;

 

(9) purchase cannabis concentrate, hemp concentrate, and synthetically derived cannabinoids from a cannabis microbusiness, another cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler for use in manufacturing adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products;

 

(10) purchase hemp plant parts and propagules from a licensed hemp grower licensed under chapter 18K;

 

(11) purchase hemp concentrate from an industrial hemp processor licensed under chapter 18K;

 

(12) package and label adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to customers;

 

(13) sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers; and

 

(14) perform other actions approved by the office.

 

(a) A cannabis mezzobusiness that cultivates cannabis at an indoor facility may cultivate up to 15,000 square feet of plant canopy. The office may adjust plant canopy limits upward to meet market demand consistent with the goals identified in section 342.02, subdivision 1.

 

(b) A cannabis mezzobusiness that cultivates cannabis at an outdoor location may cultivate up to one acre of mature, flowering plants unless the office increases that limit. The office may increase the limit to no more than three acres if the office determines that expansion is consistent with the goals identified in section 342.02, subdivision 1.

 

How Much Will a Minnesota Dispensary License Cost?

 

 

Of course the cost of starting a cannabis business in MN is much higher than the actual licensing fees, but if you want to know the specific fees to be paid to the OCM, that information is here:

 

• MN cannabis microbusiness (application fee $500; no initial license fee; renewal license fee $2,000)
• MN cannabis mezzobusiness (application fee $5,000; initial license fee $5,000; renewal license fee $10,000)
• MN cannabis cultivation license (application fee $10,000; initial license fee $20,000; renewal license fee $30,000)
• MN cannabis manufacturer (application fee $10,000; initial license fee $10,000; renewal license fee $20,000)
• MN Dispensary license (application fee $2,500; initial license fee $2,500; renewal license fee $5,000)
• MN cannabis wholesaler license (application fee $5,000; initial license fee $5,000; renewal license fee $10,000)
• MN cannabis transporter license (application fee $250; initial license fee $500; renewal license fee $1,000)
• MN cannabis testing facility (application fee $10,000; initial license fee $10,000; renewal license fee $20,000)
• MN cannabis event organizer (application fee $750; initial license fee $750)
• Cannabis delivery service (application fee $250; initial license fee $500; renewal license fee $1,000)
• Lower-potency hemp edible manufacturer (application fee $250; initial license fee $1,000; renewal license fee $1,000)
• Lower-potency hemp edible retailer (application fee $250 per retail location; initial license fee $250 per retail location; renewal license fee $250 per retail location)
• Medical cannabis cultivator (application fee $250; no initial license fee; no renewal license fee)
• Medical cannabis processor (application fee $250; no initial license fee; no renewal license fee)
• Medical cannabis retailer (application fee $250; no initial license fee; no renewal license fee)
• Medical cannabis combination business (application fee $10,000; initial license fee $20,000; renewal license fee $70,000)

 

What Are the Costs of a Minnesota Dispensary License Beyond Just Licensing?

 

In terms of the MN cannabis license cost, plan to spend between $250k and $500k, depending on the cost of your facility, its size and how much you spend on branding and decor. You’ll also have to have money for security systems, inventory, labor and lots of other smaller equipment items and supplies.

 

Minnesota Cultivation License – Because You Want an MN Grow License

 

Cultivation is the most difficult and most expensive of the cannabis licensing types. It takes lots of experience to grow world class cannabis because so many things can go wrong with biological beings. They don’t behave predictably, and there are many environmental factors that must be balanced to get the most out of them. You have to get to know your media, your fertilizers, your genetics, and also avoid bugs and diseases. In an open market, such as California, only the strong cultivators survive. In a limited-license environment, less experienced growers can still sell their products. The earlier you get into the industry, the easier it will be to succeed with a Minnesota grow license.

 

Expect to spend about $400 per square foot building out a pre-existing warehouse. This cost is due primarily to all of the environmental equipment needed to offset heat and moisture and contamination in a cultivation facility. You really need to create and maintain lab-like sanitary conditions, but with massive amounts of cooling, drying and air purification. So the cost of a cultivation license in Minnesota isn’t high for the license itself; it’s high for the development of the facility.

 

What Are the Qualifications for Social Equity?

 

An applicant qualifies as a social equity applicant if the applicant:

 

(1) was convicted of an offense involving the possession or sale of cannabis or marijuana
prior to May 1, 2023;

 

(2) had a parent, guardian, child, spouse, or dependent who was convicted of an offense
involving the possession or sale of cannabis or marijuana prior to May 1, 2023;

 

(3) was a dependent of an individual who was convicted of an offense involving the
possession or sale of cannabis or marijuana prior to May 1, 2023;

 

(4) is a woman who operates a women-owned business as defined in section 116J.8737,
subdivision 1, paragraph (n);

 

(5) is a military veteran, including status as a service-disabled veteran, current or
former member of the national guard, or;

 

(6) any military veteran or current or former member of the national guard who lost
honorable status due to an offense involving the possession or sale of cannabis or marijuana;

 

(7) has been a resident for the last five years of one or more subareas, such as census
tracts or neighborhoods, that experienced a disproportionately large amount of cannabis
enforcement as determined by the study conducted by the office pursuant to section 342.04, paragraph (b), and reported in the preliminary report, final report, or both; is an emerging farmer as defined in section 17.055, subdivision 1; or

 

(8) has participated in the business operation of a farm for at least three years and
currently provides the majority of the day-to-day physical labor and management of a farm that had gross farm sales of at least $5,000 but not more than $100,000 in the previous year;
or

 

(9) has been a resident for the last five years of one or more census tracts where, as
reported in the most recently completed decennial census published by the United States
Bureau of the Census, either:

 

(i) the poverty rate was 20 percent or more; or

 

(ii) the median family income did not exceed 80 percent of statewide median family
income or, if in a metropolitan area, did not exceed the greater of 80 percent of the statewide median family income or 80 percent of the median family income for that metropolitan area.

 

(b) The qualifications described in paragraph (a) apply to each individual applicant or,
in the case of a business entity, every cooperative member or director, manager, and general partner apply to at least 65 percent of the controlling ownership of the business entity.

 

Contact Us Today to Get Started!

 

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