“The fact of the established order is that solely the most important, most well-connected MSOs have sufficient capital to climate the storm if SAFE doesn’t cross.”
By Kaliko Castille, Minority Hashish Enterprise Affiliation
With the 2022 midterms over and only one runoff race left to find out whether or not the Democrats will maintain a one-vote or 50-50 majority within the Senate, all eyes (at the least within the hashish trade) are turning to the lame duck session and the hope that the Senate will lastly ship the Safe and Honest Enforcement (SAFE) Banking Act to President Joe Biden’s desk.
Minority Hashish Enterprise Affiliation (MCBA) has been supporting the SAFE Banking Act for a number of years in its present kind, however has additionally put a number of sources over the past two years into advocating for particular amendments that may enhance SAFE with out scaring away any Republicans who must be talked into supporting this invoice.
This time final yr, I wrote an op-ed for Marijuana Second known as “Hashish Reformers Can Get SAFE Banking or Nothing From Congress—Which Is It?” which laid out the case that this Congress will be the final probability to get SAFE Banking (learn: ANY hashish trade laws) handed till the following presidential administration.
In that piece final yr, MCBA known as not only for SAFE Banking to cross, however for it to be amended to incorporate “protections for Group Monetary Depository Establishments (CFDIs) in addition to Minority Depository Establishments (MDIs), which have a historical past of loaning to Black and Brown communities.”
I’m right here to remind of us as soon as once more that #SAFECantWait and I’m proud that so many different thought leaders have equally been pushing for an improved SAFE Banking Act to cross.
This is what MCBA is doing to assist the passage of the SAFE Banking Act. Try this op-ed from our Board President, @WizKaliko.#Cannabis #Banking #SAFE #CannabisIndustryhttps://t.co/96ll9cyYGK
— Minority Hashish (@MinCannBusAssoc) November 30, 2022
Just lately, a great pal of mine, Amber Senter of Supernova Ladies put out a considerate piece on Marijuana Second that mentioned:
“With out enhancements to the invoice, SAFE will doubtless widen the hole between the already profitable white-owned MSOs and upstart entrepreneurs from the communities that suffered probably the most underneath racist marijuana regulation enforcement.”
One other well-respected group, the Hashish Regulators of Colour Coalition, put out a considerate paper with various suggestions to enhance SAFE, together with an identical push for the inclusion of CDFIs and MDIs, amongst different strategies.
MCBA will use the following few weeks to proceed to push for 3 insurance policies we imagine is not going to solely obtain the unique objectives of the invoice however considerably enhance it for minority entrepreneurs:
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Inclusion of Group Growth Monetary Establishments (CDFI’s) and Minority Depository Establishments (MDI’s) within the protected harbor language of the invoice as a result of these are entities with a mandate and a monitor file of lending to minority communities. By making certain these establishments can interact with the rising authorized hashish trade, we’ll open up trusted companions who’re closest with their communities to be a conduit for capital to stream.
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Ending the discriminatory follow of excluding cannabis-related entrepreneurs from accessing the Small Enterprise Administration (SBA), which has the flexibility to challenge microloans starting from $500 to $50,000 in addition to the 7(a) packages that award as much as $5 million in low-interest lending. Additional, this might give hashish entrepreneurs entry to the nationwide community of technical assist from SBA places of work starting from Portland, Maine to Portland, Oregon and all the authorized markets in between.
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Inclusion of the HOPE Act, which might encourage and supply sources to state and native governments to institute expungement packages for hashish offenses. Whereas this isn’t a banking-related reform, it’s crucial to enhance the financial standing for thousands and thousands of Black and brown Individuals who’ve been held again from absolutely collaborating within the economic system as a consequence of discriminatory background checks.
For years, we have now fought for these enhancements, each lobbying Congress in addition to persuading these within the white-owned, MSO-led lobbying organizations to acknowledge credible considerations in regards to the restricted nature of SAFE as initially drafted. In actual fact, it was certainly one of my predecessors who collaborated with the Small Enterprise Committee to draft the SBA invoice and testified earlier than Congress in assist of it.
Politics is the artwork of the attainable.
We have got an opportunity to cross one thing however an especially slender window to do it in.
Here’s what @MinCannBusAssoc is engaged on.
1) Add CDFI’s & MDI’s into protected harbor language
2) Embrace entry to SBA
3) Embrace HOPE Act expungement textual content https://t.co/DnQ2DS2PLV— Kaliko Castille (@WizKaliko) November 30, 2022
And Congress in a bipartisan approach—notably Senate Majority Chief Chuck Schumer (D-NY) and Sens. Cory Booker (D-NJ), Steve Daines (R-MT) and Sherrod Brown (D-OH)—have all responded favorably.
The fact of the established order is that solely the most important, most well-connected MSOs have sufficient capital to climate the storm if SAFE doesn’t cross. However even in that occasion, the legalization motion may have taken such a step backwards, it is going to be unhealthy for his or her backside line as properly.
Now we actually have a chance to create an improved “SAFE Plus” invoice and it’s crucial that each one actors work in concord to make sure a profitable vote.
MCBA lately teamed up with Minorities for Medical Marijuana (M4MM), Ladies Develop and Marijuana Issues to host a “SAFE Can’t Wait” city corridor, and I used the soccer analogy that we want kick a subject aim to get some factors on the board earlier than we go into halftime (a brand new Congress).
At this level, SAFE isn’t nearly public security and entry to banking—it’s a morale increase for 1000’s of entrepreneurs who’ve put their livelihoods on the road solely to be denied the fundamental enterprise providers another small enterprise would be capable of entry.
The present actuality is already certainly one of “haves” and “have nots”—that means that solely probably the most properly capitalized and properly related entrepreneurs have entry to banking—it’s time that we take away any obstacles to fundamental enterprise providers for hashish entrepreneurs and SAFE-Plus is a superb place to begin.
#SAFECantWait so let’s kick that subject aim and get some factors on the board.
Kaliko Castille is the president of the Minority Cannabis Business Association and co-founder of ThndrStrm Methods, a digital technique agency. Disclosure: He additionally helps Marijuana Second’s work through a monthly pledge on Patreon.
Picture courtesy of Philip Steffan.