LOS ANGELES, CALIFORNIA, USA, October 23, 2023 /EINPresswire.com/ — The Social Equity Capital Fund (SECF) posted a request for proposal (RFP) seeking capital partners to launch the Cannabis Loan Fund, which will provide low-cost financing to social equity licensees countrywide.
SECF is targeting a total fund size of $100 million with the help of private lenders. The fund will offer much-needed capital to cannabis businesses owned and operated by minorities who have been awarded licenses to operate in cities throughout the country. The ultimate fund size will depend on private lenders’ responses to the RFP.
“I created the Social Equity Capital Fund to both advance an emerging legal industry while also righting the wrongs of previous, discriminatory cannabis policy,” SECF President and CEO Francis Kanneh says.
“Minority cannabis businesses are forced to use high-interest lenders or forgo capital improvements, leaving low-income entrepreneurs to pay exorbitant interest. As states approve marijuana decriminalization legislation, communities of color are frequently left behind in the booming and very successful cannabis business, with revenues expected to reach $50 billion by 2026. Social equity programs, on the other hand, can help repair the harm done to these communities by years of discriminatory marijuana enforcement practices. These equity programs, in particular, can help individuals from disproportionately affected communities join and sustain firms in the legal marijuana industry by offering support for loans, grants, business trainings, and other resources.”
The RFP opened on October 21st.