America's Progress: State Equity Programs
Equity Is A Priority For The Cannabis Industry
Cannabis culture and, more currently, the industry have deep roots in racially prejudiced operations and means. The War on Drugs had such a significant propaganda success that still, after decades, impacts perceptions of minorities. Currently, BIPOC individuals in Canada and the USA are, at minimum, four times more likely than Caucasians to be arrested for cannabis-related offenses. And though there may be a significant discrimination presence lurking in the cannabis space, many governments are working to help lift those who the War knocked down on Drugs impact. Equity has become a front-runner for support programs for minorities subject to harsh cannabis prohibition laws in the USA, prioritized by many state governments. There are also non-government-funded operations, like the Minority Cannabis Business Association, which are leading the charge in offering equal support to others.
Through these initiatives, individuals from marginalized groups are given the tools and resources they need to participate in a historically excluded field. States like California, Illinois, Maschettusets, and others that have legalized provide options for assistance in the form of financial support, career building, and business licenses. Accessibility to the programs based on your current conviction status, income, residency, and neighborhood location all play a role in receiving approval for receiving support based on the state. The following can be used as a guide to compare and navigate Cannabis Equity Programs in several states.
Cannabis Equity Programs in California
California is known as the pinnacle of the cannabis industry due to its deep history of activism and mastery of producing high-quality products. Knowledgeable consumers and industry workers across the globe understand the importance of California’s place in the industry, from strain families to business strategies. In fact, California was the first state to legalize medical marijuana in the USA in 1996. California joined almost two dozen others in the recreational market twenty years later.
Social Equity Criteria and Definition
Equity Program Requirements
Previous Cannabis Conviction Status
Income
Qualifying Neighbourhood / Municipal Residency
Not Required for Equity Program
State Residency
Benefits Of The California Social Equity Program:
In California, social equity benefits are distributed locally and vary based on jurisdiction. Some cities and counties have established their cannabis equity programs to promote diversity and inclusivity in the industry by providing financial assistance, technical support, and other resources to individuals and businesses from communities that the War has disproportionately impacted on drugs. The only direct state-level benefit is the fee waiver and deferral program, which allocates at least 60% of waivers to social equity applicants/license holders.
Local equity programs include:
Support for beginning and maintaining a small business
Guidance on industry regulations and fees
Financial support on cannabis-related licenses and permits
Assistance in finding business locations and investments
Recruitment, training, and more
Cannabis Equity Programs in Illinois
Illinois first legalized medical cannabis in 2013 and recreational cannabis in 2019. This has created a new industry in the state, providing economic advantages and opportunities. The potential negative impacts of legalization on underrepresented groups, who have been disproportionately affected by the War on Drugs, were also known to policymakers.
Social Equity Criteria and Definition
Equity Program Requirements
Previous Cannabis Conviction Status
State Residency
Qualifying Neighbourhood / Municipal Residency
Not Required for Equity Program
Income
Benefits Of The Illinois Social Equity Program:
The Illinois Adult-Use Cannabis Social Equity Program aims to provide opportunities for individuals and communities that have experienced a historical impact from cannabis-related arrests and imprisonment, to participate in the legal cannabis industry through technical assistance, eligibility for extra points on license application scores, reduced fees, and access to low-interest loans to start and operate a cannabis-related business. Most importantly, this program aims to promote equity and inclusion in the growing cannabis industry.
Local equity programs include:
Low-interest loans for beginning a cannabis-related business
Technical assistance to start working in the cannabis industry
Additional points on licensing applications
Reductions of fees
Cannabis Equity Programs in Massachusetts
Racial equity has been a top priority in conversations around recreational legalization in Massachusetts since 2016 and during medical legalization in the state four years prior. As a result, a Social Equity Program has been created to guide cannabis businesses and their employees across the state. The program provides resources to those in need while acknowledging that historically persecuted groups may have had less access to information, funding, and support.
Social Equity Criteria and Definition
Equity Program Requirements
Previous Cannabis Conviction Status
State Residency
Qualifying Neighbourhood / Municipal Residency
Income
Applications for the Social Equity Program and the Economic Empowerment Program can be expedited for candidates who live and work in areas that have been disproportionately affected by the War on Drugs. In addition, the Massachusetts Cannabis Control Commission is focused on social justice, and the National Cannabis Industry Association has launched an equity scholarship and opportunity fund for business owners of color.
Benefits of the Massachusetts social equity program:
Management, recruitment and training, finances, legal, strategy, operations, etc. assistance, training, and SaaS System financial support
Those with a 10% ownership stake in the business have priority for license application reviews
The first year's Annual Delivery Licensee Fee is complimentary, and subsequent years' fees are discounted by 50%.
Help will be provided to identify or raise funds or capital for the business.
By addressing the underlying issues that create disparities in the cannabis industry, equity programs can help to create a more sustainable and equitable market that benefits everyone.
Many communities have leaned toward entrepreneurship, and it’s easy to say states are prepared to support these business ventures.
In conclusion, equity programs for the cannabis industry are crucial for addressing historical injustices and promoting inclusion in the growing market. The social equity programs implemented in states like California, Illinois, and Massachusetts offer financial support, technical assistance, reduced fees, and access to low-interest loans to start and operate a cannabis-related business. These programs aim to promote social justice and help those who the War has disproportionately impacted on drugs. By supporting entrepreneurship and creating a more sustainable and equitable market, equity programs have the potential to benefit everyone. As more communities lean towards entrepreneurship, it is essential to prioritize equity in the cannabis industry. While there are still challenges to overcome, equity programs represent a positive step towards creating a more just and inclusive future for all.
Learn more about navigating your cannabis career here or check out the White Ash Group’s job board.