The Agenda to exclude black Americans out of the pot rush

Are black Americans missing the pot rush?

The legalization of medicinal and recreational cannabis use across the States has created another opportunity from which people of color are excluded. The absence of black people is due to the historical experience of blacks and a system that has always sought to deny them dignity. The factors that lead to the black absence in the cannabis industry are numerous. This article will focus on just a few, and conclude with tips on how to get involved.

Capital

The initial problem is access to capital resources. The cannabis industry has a fraught relationship with federal financial regulators, so the industry has very few lines of credit. With low access to credit, starting a cannabis business requires a lot of cash. Access to capital for regular business is difficult for people of color, so naturally accessing capital for the cannabis industry would be even harder, if not impossible.

Most cannabis entrepreneurs use business networks, community networks, personal savings or established family wealth to gather enough capital for a cannabis business. A critical measurement of wealth is homeownership, according to the Brookings Institution in 2016, black families had $17,150 while white families had $171,000 in wealth. So before a black entrepreneur gets started, they are already on the back foot.

Additionally, the credit scores for black people were disproportionately affected during the 2008 crisis. That is because they were the target for predatory loans with exorbitant interest rates and eventually lost homes that were worth less than what they had paid for them.

So for black people to enter the cannabis market is a huge task. Most black Americans. do not have the personal wealth, networks or access to capital to get started.

Zoning

Licensing for cannabis is a zoning issue. Only specific areas within counties can grow, process or sell cannabis products. The areas chosen are not within black or brown communities. The zoning issue is an inevitable product of the redlining of districts.

Redlining is a zoning practice of segregating communities in a way that disadvantages people of color. Redlining has historically been proven to have not only denied black citizens access to housing, but it also created zones in which development and investment were excluded from those areas.

Racial injustice

The justice system has been failing people of color for generations. The criminalization of cannabis was not only racially motivated, but it has unfairly impacted black and brown communities.

As States precariously legalize cannabis, they try to steer clear of its criminal elements. That has led to legislation which proactively disqualifies people with criminal records from owning or working for a legal cannabis enterprise. This portion of the law immediately excludes black and brown people from participation in the cannabis industry as they are more likely to have criminal records.

How can black and brown people benefit from the pot rush?

The first thing that must happen is to expunge the records of millions of black and brown people who have criminal records for small cannabis offenses. Each legislation that is yet to be passed must carry this condition. Laws that have been passed must be amended. This will bring the critical mass potential for social justice issues that can help rectify the situation, such as reserving 25% of licensees for minorities, expunging minor cannabis criminal records, or using taxes from cannabis used to lift black communities. Here are some organizations that focus on social justice in the cannabis field;

National Expungement Week: is a grassroots organization that seeks to bring justice to communities which have been affected by the War on Drugs.

Drug Policy Alliance: advocates for the decriminalizing drug of possession, fairer justice systems, non-exclusion of people with a drug arrest or conviction from fundamental rights and opportunities along with a resource centre on the effects of the War on Drugs.

Last Prisoner Project: this advocacy group has a singular focus to get every last cannabis prisoner on the planet out of jail and back to their homes.

Secondly, black and brown communities must get involved in the decision making that happens within their communities. Counties and States must be lobbied to include black and brown communities for cannabis licensees along with a preference for local entrepreneurs. The following organizations advocate for black communities regarding cannabis;

National Organization for the Reform of Marijuana Laws (NORML): seeks to reform state and federal marijuana laws, whether by voter initiative or through the elected legislatures.

Minorities for Medical Marijuana: is a nonprofit organization providing advocacy, education, training, and outreach to underserved communities.

Thirdly, African/black people from around the world must network and go beyond the production and sale of cannabis. Remember the adage, the people who made money from the California Gold rush sold shovels; take the same mindset into the cannabis rush. The legalization of cannabis brings new opportunities in the industry like legal counsel, compliance, marketing services, distribution solutions, packaging, growing equipment, and so much more. Here are a few business development organization which seek to help black people get into the cannabis industry;

C.E Hutton: business development company offering financial, investment, and other business support services to minority-owned businesses within the legal cannabis industry.

Viola Brands: has an incubator program that allows black market cannabis products to turn legitimate.

Minority Cannabis Business Association: is on a mission is to create equal access for cannabis businesses and promote economic empowerment for communities of color using business funding, policy considerations, social programming, and outreach initiatives.

NuLeaf Project: invests cannabis tax and corporate revenue into Portland, Oregon based businesses owned by people of color and Portland professionals of color.

National Diversity and Inclusion Cannabis Alliance (NDICA): was founded to create social equity, social justice and diversity for those affected by the War on Drugs. It is a qualified vendor for Los Angeles’ Social Equity Business Development Program which assists entrepreneurs and companies with business licensing applications and more.

Women Grow: is a network built specifically for women to occupy the cannabis industry.

Too many black lives have paid the price for cannabis to be consumed in America. It is time that black communities demand the stake in the industry that they are owed. They must organize, advocate, network and invest around this new opportunity. As the industry starts to expand we need to dedicate ourselves to creating representation in all levels of the industry. We can’t rely on companies outside of our communities to provide employment when we can develop companies with our own profound cultures.

Want to learn more by following the Daily Hemposium for all relevant news pertaining to the cannabis industry. Brought to you by mPower Hemp LLC.