Dozens of New York and New Jersey Equity Cannabis Licensees and Applicants Urge Leader Schumer, Senate to Pass SAFE Banking
40 signatories demand the Senate pass cannabis banking reform to lessen barriers to entry for minority businesses and increase public safety
October 28, 2022
Contact: Sarah Davey Wolman, 202-834-3725, press@uscannabiscouncil.org
WASHINGTON, D.C. – Dozens of equity cannabis licensees and applicants from New Jersey and New York sent a letter to Majority Leader Chuck Schumer (D-NY) today demanding that the United States Senate bring the Secure and Fair Enforcement (SAFE) Banking Act for a floor vote to lift the federal ban that prohibits financial institutions from servicing cannabis businesses. Read the full letter here.
Organized by the United States Cannabis Council’s Diversity, Equity and Inclusion (DEI) Working Group, the letter is the latest effort to push Sen. Schumer, Sen. Cory Booker (D-NJ), and other members of the United States Senate to pass SAFE by the end of the year.
“The Senate has the votes to pass the SAFE Banking Act, which will help clear hurdles for small business owners and address the harms caused by the federal prohibition of cannabis," said Khadijah Tribble, CEO of the United States Cannabis Council (USCC). "New Jersey and New York are trying to ensure that the communities most harmed by the war on drugs are able to enter the regulated market and seize the opportunities that legalization offers — but breaking through any industry requires access to capital and banking that most cannabis operators don’t get. Lawmakers who care about righting past wrongs and protecting public safety must pass SAFE before the end of 2022."
Multiple states, including New Jersey and New York, have announced moves to ensure social equity within the cannabis space. The forty signees are among a growing number of special equity licensees and applicants entering the legal cannabis market who are concerned about access to the financial institutions they need to succeed.
In New York alone, more than 900 aspiring entrepreneurs submitted applications for 150 available social equity license spots. Without SAFE Banking, many of the letter’s signatories fear that the thousands of people trying to enter or survive in the cannabis market will ultimately fail.
“[Passing SAFE would allow my future dispensary to] legitimately do payroll, legitimately be able to engage with credit and debit merchants—all essential pieces of running a business. And it will open the door for minority operators to have equal access to these institutions and services,” said Lerone Jones, owner of Mister Jones LLC.
Another chief concern mentioned within the letter is public safety, particularly the well-being of operators, employees, and customers—with cannabis businesses forced to operate on a cash-only basis, becoming a target for violent robberies.
“There is cannabis being grown in New York state right now. There are processing facilities that are built and working to process material. Applications for dispensing have been released. So we need to be ahead of this to make sure that public safety comes first,” said Britni Tantalo, President of Flower City Dispensary.
"Banking [for cannabis businesses] should be available everywhere. If the closest bank is 13 miles away, and I have to carry cash from point A to point B, that could be dangerous," said Justin Crosgile, owner of Treeotics LLC.
In addition to advocating for the passage of SAFE Banking, the letter also asks that the Senate include potential restorative justice provisions to support communities most harmed by the war on drugs and the continued federal prohibition of cannabis.
“There needs to be expanded opportunities for people that helped build the market and put their lives on the line with it,” said Mike Golden, co-founder and CEO of The Higher Calling LLC. “SAFE Banking would help ensure social equity for the people who were harmed the most by the war on drugs.“
The personal stories of several of the equity licensees who signed the letter to Sen. Schumer have been made available, with their permission, HERE.
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The US Cannabis Council (USCC) is the voice of America's regulated cannabis industry. Our business members include many of the largest cannabis companies in the nation, and our nonprofit members are leaders in cannabis policy, criminal justice reform, and more. By harnessing the collective power and reach of our 60+ member companies and nonprofits, we have become a leading force for ending federal prohibition and creating an equitable and values-driven cannabis industry. For more information visit https://www.uscc.org/