Rep. Barbara Lee Requests Financial Data On Barriers Faced By Minority Cannabis Entrepreneurs

The Financial Crimes Enforcement Network (FinCEN) recently received a letter signed by Representatives Barbara Lee (CA-13) and Earl Blumenauer (OR-03) requesting data on financial services offered to minority cannabis businesses.

The reason the lawmakers sent the letter was to better understand the barriers faced by minority marijuana entrepreneurs, who often cite a lack of access to necessary capital and financial services to enter the legal industry.

What Does The Letter Say?

Lee and Blumenauer said that as “momentum for marijuana decriminalization continues, FinCEN data could help shed light on the state of minority-owned and small cannabis businesses (which constitute businesses with revenues under $40 million) seeking financial services.”

The letter highlighted how disparities in access to capital and financial services for individuals and businesses increase financial barriers and exacerbate the racial wealth gap, further harming those most harmed by the failed War on Drugs.

A Federal Solution Is Needed

“Given the increasing momentum of cannabis legalization and much-needed clarity from the federal government, Congress must devise a national solution to equitably end the cannabis prohibition and encourage industry growth,” reads the letter.

Barbara Lee, who with Blumenauer serves as the Democratic co-chair of the Congressional Cannabis Caucus, noted that FinCEN data on access to financial services could help promote equitable access to financial services for small and minority-owned cannabis businesses.

“We welcome the opportunity to work with FinCEN to ensure Congress is equipped with the critical data needed to effectively address equity concerns when crafting solutions to end the federal cannabis prohibition,” they wrote.

A 2021 Brookings Institution report found that black-owned businesses faced more disparities in access to banking services and deposits, home loans and small business loans than their white counterparts.

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Photo: Courtesy of Joel Muniz On Unsplash