Recent coverage highlighted how banking and social equity in the cannabis industry are connected.
Spotlighting the story of the owners of Massachusetts cannabis dispensary Firehouse, a recent Forbes article (1) highlighted the effect of lack of access to banking and traditional loans on social equity licensees attempting to start their cannabis businesses. Several factors continue to complicate the already challenging situation, such as the recent ban by Mastercard on cannabis purchases (2) and lawsuits against some social equity programs (3).
“I believe the architects of the social equity programs are doing their best to create advantages for the individuals they want the programs to serve,” commented Patrick Rea, fund manager for Poseidon Asset Management, a cannabis-focused investment fund (1). “Still, unless changes come to the other headwinds every cannabis business faces, the potential for low/no investor returns is hindering further investment in social equity entrepreneurs.”
The article explained the journey of the owners of Firehouse cannabis shop from social equity licensee applicants to their yearslong multiple attempts to secure capital and real estate needed to establish their shop (1). Their story exemplified the fact that even with solid and well-meaning social equity programs, few shops in the nation have actually succeeded because of them (1). Ultimately, the article concluded that the best way to move forward is for the Secure and Fair Enforcement (SAFE) Banking Act to finally pass and create lending opportunities, a sentiment shared by Firehouse (1).
“We are poised to be a genuine, locally focused cannabis retail experience, but our success story sheds light on the greater issue faced by social equity businesses like ourselves,” Firehouse cannabis shop stated in a LinkedIn post last week (4). “To truly empower entrepreneurs of color and those impacted by cannabis prohibition, federal banking reform is urgently needed. Congress must pass legislation like the SAFE Banking Act, which opens access to the banking system and institutional lending for the cannabis industry, and ensure that people impacted by the War on Drugs can access that banking.”
References
Ep 27: Tracking Strains in Diverse Landscapes
July 2nd 2025In this latest installment of Noid Knowledge, we are joined by Daniela Vergara, PhD, Hemp Specialist at the Cornell Cooperative Extension, and Anna Schwabe, PhD, Associate Lecture Professor at the University of Colorado, discussing the evolution of cannabis cultivation and the need for regional climate data. Their recent project, funded by the Agricultural Genomics Foundation, studies 10 cannabis varieties grown by farmers in different regions, specifically plant characteristics, soil type, and harvest metrics. They aim to understand how environmental factors affect cannabis yield and quality, providing actionable insights for farmers and breeders.
Ep 26: Innovations in Drying and Curing to Protect Flower Quality
May 27th 2025In this latest installment of Noid Knowledge, we are joined by Dr. Allison Justice, Founder and CEO of the Hemp Mine, and David Sandelman COO, CTO & Co-Founder of Cannatrol. Here, Allison and David discuss innovations in cannabis drying and curing, focusing on the Cannatrol technology which controls vapor pressure, preserving trichome integrity, and flower quality. Additionally, Allison shares how the Cannabis Research Center and Coalition (CRC) is transition to an open-source model to support cultivators, researchers, and home growers.
Ep 27: Tracking Strains in Diverse Landscapes
July 2nd 2025In this latest installment of Noid Knowledge, we are joined by Daniela Vergara, PhD, Hemp Specialist at the Cornell Cooperative Extension, and Anna Schwabe, PhD, Associate Lecture Professor at the University of Colorado, discussing the evolution of cannabis cultivation and the need for regional climate data. Their recent project, funded by the Agricultural Genomics Foundation, studies 10 cannabis varieties grown by farmers in different regions, specifically plant characteristics, soil type, and harvest metrics. They aim to understand how environmental factors affect cannabis yield and quality, providing actionable insights for farmers and breeders.
Ep 26: Innovations in Drying and Curing to Protect Flower Quality
May 27th 2025In this latest installment of Noid Knowledge, we are joined by Dr. Allison Justice, Founder and CEO of the Hemp Mine, and David Sandelman COO, CTO & Co-Founder of Cannatrol. Here, Allison and David discuss innovations in cannabis drying and curing, focusing on the Cannatrol technology which controls vapor pressure, preserving trichome integrity, and flower quality. Additionally, Allison shares how the Cannabis Research Center and Coalition (CRC) is transition to an open-source model to support cultivators, researchers, and home growers.
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