NY: Gov. Hochul announces $200M for social equity cannabis businesses


New York will establish a $200 million fund to support social equity applicants seeking adult-use cannabis business licenses, Gov. Kathy Hochul announced Wednesday during her State of the State address in Albany. The fund is welcome news to those who have questioned how one of the most progressive cannabis legalization laws in the country would prop up those most impacted by the War on Drugs. Yet the funding mechanism — a “public/private” model based on licensing fees and taxes, according to the governor’s office — has some industry insiders concerned.

Amber Littlejohn, executive director of the Minority Cannabis Business Association, said she supports the idea, but questioned what it would do to the timeline for social equity applicants entering the newly formed market. If seed funding comes from licensing fees and taxes, Littlejohn said, that likely means money won’t be available to those applicants until after the adult-use market is already up and running. “I love the spirit; $200 million sounds good, but if it comes after the market has already opened, then it has come too late,” said Littlejohn. She also questioned where private funding will come from, and whether those entities pouring in money might receive a head start in the nascent marketplace. Read more at  https://www.syracuse.com/marijuana/2022/01/gov-hochul-announces-200m-for-social-equity-cannabis-businesses.html

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Source : NY: Gov. Hochul announces 0M for social equity cannabis businesses

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