Minnesota Cannabis Microbusiness Licensing

The Minnesota cannabis microbusiness application window is open but CLOSING SOON- MARCH 14th, 2025! 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 MN cannabis microbusiness applicants. Whereas last summer, most license types were limited (capped) in number, now only retailers, large 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 Minnesota cannabis application support (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.

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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. Additionally, 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. Cannabis microbusiness licensees can even have a consumption lounge if they can secure local municipal approval.

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 (except that retail outlets and consumption lounges can be limited locally). 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.

Minnesota Cannabis Microbusiness License Requirements – Rights and Restrictions

According to Minnesota Statute § 342.28 Cannabis microbusinesses can grow, make, sell, and buy cannabis (including plants and seedlings), lower-potency hemp edibles, and hemp-derived consumer products. They can also have an on-site space where customers can use cannabis. They also can:

• Operate a single retail location.
• Allow onsite consumption on a portion of its premises where customers can consume edible cannabis products and lower-potency hemp edibles.
• Grow up to 5,000 square feet of plant canopy indoors or up to one-half acre of mature flowering plants outdoors.
• Transport between facilities under same license holder.
• 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 customers.

The types of “endorsements” they can operate under include:

• Cultivation
• Extraction and concentration
• Production of consumer products (manufacturer)
• Retail operations*
• On-site consumption
• Edible cannabinoid product handler endorsement

* Retailers within all license types must also have local registration per Minn. Stat. § 342.22, which states “Registration required. Before making retail sales to customers or patients, a cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, medical cannabis combination business, or lower-potency hemp edible retailer must register with the city, town, or county in which the retail establishment is located. A county may issue a registration in cases where a city or town has provided consent for the county to issue the registration for the jurisdiction.”

Location and Zoning Restrictions for MN Cannabis Microbusinesses and Other Cannabis License Types Engaging in Retail and Consumption Lounge Functions

Your local municipality has very little control over limiting cannabis production activities, but it has quite a lot of control over limiting cannabis dispensary licenses and consumption lounge licenses for micro and mezzobusinesses. They are only required to allow 1 retail business for every 12,500 residents.

Anyone seeking to engage in these types of license activities needs a “registration” from the city or county, which establishes that all property taxes are up to date, the business is in compliance with local laws, and that it has permission to operate.

The city or county will likely designate certain zoning types that are suitable for various cannabis license activities, and this usually triggers a bidding war on attractive and available locations. It’s important to stay well informed at the local level about all of these issues as you beginning your microbusiness license application in Minnesota.

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.

Read More About the Various Minnesota Cannabis License Types.

 The OCM has listed what they call “Preliminary” plans and procedures that will need to be uploaded (for both lottery and uncapped applicants), and they will provide pdf worksheets for these plans with page and character limits. They are:

VIEW OUR MINNESOTA CANNABIS MICROBUSINESS APPLICATION KIT

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.

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

MN Cannabis Mezzobusiness Application and License Cost

• Application fee $5,000
• Initial license fee $5,000
• Renewal license fee $10,000

Click Here If You Would Like Us to Provide MN Application OR Lottery Qualification Documents

. This Includes All Plans and Procedures They Request.

Even cannabis 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 a MN cannabis micro business plan if you would like to create a detailed set of planning documents. 

Getting started on your Minnesota cannabis microbusiness license application might seem daunting, but breaking it down into actionable steps can ease the process. Begin reading MN’s Cannabis FAQ. Next, focus on gathering the required documentation for your marijuana license application (From Us!). Create an account in the OCM’s Cannabis Application Online Portal and start exploring how it works and what information is required.

Timeliness in your microbusiness license application process can make all the difference, so don’t delay. When you are applying for your marijuana microbusiness 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, 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 MN 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.

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