(Editor’s note: This is the third in an occasional series focused on questions from Providence Business News readers for R.I. Commerce Corp. Secretary Elizabeth M. Tanner. See previous installments here.)
1. In 2023, Rhode Island saw about $108 million in cannabis sales revenue with only [seven] dispensaries up and running. Given that the state Cannabis Control Commission will soon distribute 24 new adult-use cannabis retail licenses, six of which are reserved for “social equity” applicants and another six for worker cooperatives, how does R.I. Commerce plan to leverage its resources to help ensure that ownership in this ballooning industry is accessible to underrepresented Rhode Islanders, its new startups are financially sustainable and the wealth it generates is reinvested in our state?
All businesses in Rhode Island are important to the state’s overall economy, including the seven existing cannabis dispensaries. Once the Cannabis Control Commission promulgates its rules and regulations and moves forward with issuing up to 24 new licenses statewide, the team at Rhode Island Commerce will work with them, as we do with businesses in all industries across the state, to help them access the capital, technical assistance, and other supports they need to grow and thrive in Rhode Island. For updates on rules and regulations, visit ccc.ri.gov.
2. Assuming partner banks and credit unions are comfortable lending to them, are businesses in the cannabis industry eligible to participate in the Capital Access Program? Along the same lines, are startup cannabis businesses eligible to participate in the Minority Business Accelerator, or take advantage of any of Commerce’s other forms of assistance for startups?
Cannabis businesses are not eligible to participate in the Capital Access Program because CAP is funded through the federal U.S. Department of Treasury. The same is true for the Minority Business Accelerator Program, which is funded with state fiscal recovery funds, i.e. federal dollars. However, these businesses would potentially be eligible for all state-funded Commerce programs like the Rebuild RI Tax Credit, Renewable Energy Fund, Site Readiness, Small Business Development Fund and the Small Business Assistance Program, just to name a few.
3. I worry about the ultimate fate of the R.I. Minority Business Accelerator program. This Commerce initiative helped certify hundreds of new M/WBEs in R.I. Will MBA funding continue to be included in the state budget?
The Minority Business Accelerator Program has helped more than 1,250 unique MBEs/WBEs in Rhode Island to date. All state agency budget requests are currently being reviewed; however, I’d like to note that in the recently enacted Fiscal Year 2025 budget, an additional $500,000 was allocated to the Executive Office of Commerce to enhance the capacity of state-certified minority and women-owned businesses [MBEs/WBEs] to successfully compete in state procurement and private-sector contracting. Details regarding the new program, which incorporates lessons learned from the pilot, will be forthcoming later this fall. Support for these entities is a priority for this administration and for the Executive Office of Commerce.
(Do you have a question for R.I. Commerce Secretary Elizabeth M. Tanner? Send it to PBN Editor Mike Mello at mello@pbn.com.)
