New York State Assembly Majority Leader Crystal Peoples-Stokes is calling for extending financial aid to struggling cannabis store operators who are paying high costs on loans from a “social equity fund” created as part of the state’s marijuana legalization program. The fund, which aims to help people affected by discriminatory drug laws, has struggled to meet its goals and has only opened 21 out of 150 planned dispensaries.
The fund was initially intended to provide financing for opening up to 150 dispensaries but has been plagued by high costs exceeding estimates. As a result, licensees are saddled with huge debts and strict repayment terms. Peoples-Stokes suggests using part of the fees paid by medical cannabis companies that entered the general retail market to help the struggling borrowers.
The proposal comes as some licensees have turned to alternative financing sources or struggle to pay their bills. The managers of the fund have earned $1.7 million in fees over a year, while the New York Medical Cannabis Industry Association has filed a lawsuit alleging that the current fee structure is unconstitutional due to lack of funding for social and economic assistance.
Source: https://www.thecity.nyc/2024/12/10/cannabis-fund-aid-social-equity