In our spotlight on Business Report, the state is combating criticism over a lack of diversity in the recreational weed market through a new grant program.

Today unveiling the winners of its Cannabis Equity Grant Initiative aimed at helping startups in the cannabis industry with operation costs.

During those early years of business.

Melissa Rose Cooper reports.

We're a family minority and women owned business.

We're passionate about normalizing the plant and building a diverse and vibrant cannabis industry.

And by the end of the year, the doors to major will finally be open to the public.

The cannabis dispensary in Bloomfield is one of 48 businesses awarded a cannabis equity grant through the New Jersey Economic Development Authority.

In a world where women founders receive just 2% of all venture capital, with similarly dismal numbers for minority entrepreneurs, the New Jersey Economic Development Authority's joint venture grant provides a much needed lifeline to independent diversely, owned and social equity cannabis businesses.

With this grant, we'll be able to pay our bills, open nights, our faster, better market, the business and hire talented employees from the local community.

The recipients are part of the first phase of the program, awarding $250,000 to equitable businesses in the cannabis industry.

What we're doing here today really brings together two really important themes of Governor Murphy's time in office.

One is economic diversification, and the other is sort of small is small business, particularly with equity.

Tim Sullivan of the N.J., EDA says the grants will help ensure a fair representation in the markets.

Access to capital is a challenge for small businesses, particularly minority owned small businesses.

In every sector all the time.

And in some cases, the solution is alone.

In some solution cases, the solution has to be a grant.

Because when when people of means want to start a new business, they often go to their friends and family.

Not every has friends of with a couple hundred thousand dollars laying around that they can spot their friends and family to, you know, start up a new a new business that is risky, that might not make money.

But Governor Murphy and the legislature and the people of New Jersey are going to be your friends and family here.

Members of the New Jersey Cannabis Regulatory Commission say the grants are proof of the state's continued commitment to providing meaningful opportunity these to all cannabis businesses.

As of today, more than 300 cultivators, manufacturers, dispensaries and testing laboratories have received initial approval to move towards becoming operational, and that number is growing fast.

As of our last public meeting, more than 1500 conditional and annual licenses have been awarded, and many more are making their way through the application process.

We write laws, right?

We do legislation and it becomes a law.

But you know what?

What actually warms my heart when I see that it's being implemented?

When I see that it's actually working.

And to have 48 recipients to receive a grant.

Oh, my gosh.

That is amazing.

Applications for the second phase of the Cannabis Equity Grant program will open up next month.

For NJ Spotlight News, I'm Melissa Rose Cooper.