NEWS BRIEF

Only 2% of Long Beach, CA, marijuana social equity applicants operating

Just one out of 50 business applicants who qualified for Long Beach’s marijuana social equity program has actually entered the California city’s cannabis industry.

The astonishingly low 2% participation rate can be chalked up to a lack of seed money for those who qualify for the program, according to the Long Beach Business Journal, which estimated that it can cost upwards of $1 million to enter the city’s market.

In a letter to city leadership, the acting Long Beach city manager wrote that according to applicants:

“The primary reason for the discrepancy between interest in the program and actual business license applications received is the substantial amount of capital necessary to start a cannabis business.”

Long Beach was one of several California localities that received state grant money to bolster their cannabis social equity programs.

The city took in $2.7 million in funding, but so far that hasn’t translated to more minorities actually owning marijuana companies.

Long Beach’s cannabis program manager told the Business Journal he was not aware of any Black-owned marijuana retail stores in the city.

For a sampling of organizations and efforts that support, foster and enhance social equity in the cannabis industry as well as opportunities for minorities, overall diversity and racial justice, click here

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One comment on “Only 2% of Long Beach, CA, marijuana social equity applicants operating
  1. NB on

    Another social equity program that requires the real estate before the license, which is typically a higher barrier to entry for most social equity/ minority applicants. Not only that, but the city won’t even allow additional retail licenses for social equity. How can you exclude social equity businesses the opportunity to operate in a major part of the supply chain? Seems like the city isn’t in tune with the needs of social equity or cannabis at large (other than the recent cannabis tax reduction).

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