Business
Black Cannabis Entrepreneurs Say State’s $30 Million Fee Waiver Fund May Not Be Enough
The program creates pathways for individuals affected by the War on Drugs to enter into the cannabis industry. Potential business owners who are living at or below 60% of the Area Median Income; who were previously convicted or arrested for a cannabis-related offense; or who live in a community negatively impacted by past cannabis policies would be eligible for the program.
By Edward Henderson | California Black Media
Alphonso “Tucky” Blunt, owner of a marijuana product store in Oakland called Blunts and Moore, says his business is located in the same zip code where he was arrested for selling weed illegally in 2004.
Now that he is legit in the business – he opened his store in a little over three years ago — Blunt says it is nearly impossible for Black and other minority-owned cannabis startups like his to make a profit in California.
“Where’s the tradeoff? I’ve been in the business for a few years and I’m still in the red. California has one of the highest tax rates on cannabis businesses anywhere. Oakland is in the top four of anywhere in the country,” said Blunt. “We also pay the most for armed guards. It costs like $25 to $30 per hour. The city requires us to have them – unlike Berkeley where they are not required. But police respond faster there.”
Blunt says the challenges cannabis businesses in the state face are many, including the fact that they have to pay federal taxes but can’t write off any expenses because cannabis is not legal on the federal level. Businesses like his also have challenges banking because of federal restrictions. Plus, criminals frequently target cannabis businesses and when they do, insurance companies are typically unwilling to pay for damage or lost products, Blunt says.
To address some of the challenges minority entrepreneurs in the industry are facing – particularly those who were victims of the War on Drugs – legislators in California have taken a number of steps to lower barriers to entry in the industry.
“There is no doubt that the War on Drugs has disproportionately harmed people of color and their communities,” said Sen. Steve Bradford (D-Gardena), who is also chair of the California Legislative Black Caucus.
In 2019, Bradford authored SB 595, which established a cannabis equity fee waiver program. The Legislature passed that bill and the governor signed it into law the same year. The program was contingent on funding Bradford successfully obtained for its implementation in the Budget Act of 2021.
Right now, California is in the process of approving a $30 million fund that will eliminate business fees for some entrepreneurs entering the cannabis business in the state.
Last week, the Department of Cannabis Control (DCC) released the regulations it will follow to implement Senate Bill (SB) 166, the budget trailer bill Gov. Gavin Newsom signed into law in September establishing the fee waiver program.
The program creates pathways for individuals affected by the War on Drugs to enter into the cannabis industry. Potential business owners who are living at or below 60% of the Area Median Income; who were previously convicted or arrested for a cannabis-related offense; or who live in a community negatively impacted by past cannabis policies would be eligible for the program.
The waivers go toward licensing fees for their potential businesses, which can range from $1,205 to $77,905. The DCC will start accepting fee waiver requests beginning Jan. 1, 2022.
The California Office of Administrative Law will publish the proposed regulations as being “under review” on its website: https://oal.ca.gov/. DCC will share instructions for submitting a public comment and participating in the regulatory process. The agency will also announce when the comment period, which will last five days, is open to the public.
“SB 166 is part of my continued mission for the Government to atone for the wrongs inflicted on people by supporting them with opportunities to enter and thrive in the cannabis market. I encourage anyone interested in the cannabis industry, especially equity cannabis applicants and operators, to provide comments during the short window for feedback.”
DCC Director Nicole Elliott says the state will continue to invest in opportunities to make the licensing businesses more equitable, particularly for people who were impacted by the War on Drugs.
“We know access to capital remains a persistent challenge for California’s equity applicants and licensees,” she said. “These waivers aim to address this challenge for those who need the most financial support.”
Bradford said for government to truly understand the challenges entrepreneurs are facing, they have to make their voices heard and talk about the barriers to entry they face.
“These regulations are extremely important for determining who will and will not get application, licensing, and renewal fee waivers, and the amount of help they will receive,” said Bradford. “It is vital that the Administration have an accurate understanding of people’s experiences in order to create a framework that respects them.”
Blunt says he welcomes the $30 million investment the state is making to help with licenses and other costs but entrepreneurs like him need more.
“We need a two-year tax break. We have to pay some sales taxes but the extra cannabis taxes we pay, we need the break to recover. We can save some of that money and reinvest in our businesses and have some money for security,” says Blunt. “My business makes around $5 million a year, but the money I spend on security and taxes alone is easily in the $2 to $3 million range — and I’m not counting other expenses like payroll and other operational expenses. How will we ever make a profit?”
Activism
Oakland Post: Week of December 31, 2025 – January 6, 2026
The printed Weekly Edition of the Oakland Post: Week of – December 31, 2025 – January 6, 2026
To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.
Activism
Big God Ministry Gives Away Toys in Marin City
Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grow up.
By Godfrey Lee
Big God Ministries, pastored by David Hall, gave toys to the children in Marin City on Monday, Dec. 15, on the lawn near the corner of Drake Avenue and Donahue Street.
Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grew up.
Around 75 parents and children were there to receive the presents, which consisted mainly of Gideon Bibles, Cat in the Hat pillows, Barbie dolls, Tonka trucks, and Lego building sets.
A half dozen volunteers from the Big God Ministry, including Donnie Roary, helped to set up the tables for the toy giveaway. The worship music was sung by Ruby Friedman, Keri Carpenter, and Jake Monaghan, who also played the accordion.
Big God Ministries meets on Sundays at 10 a.m. at the Mill Valley Community Center, 180 Camino Alto, Mill Valley, CA Their phone number is (415) 797-2567.
Activism
First 5 Alameda County Distributes Over $8 Million in First Wave of Critical Relief Funds for Historically Underpaid Caregivers
“Family, Friend, and Neighbor caregivers are lifelines for so many children and families in Alameda County,” said Kristin Spanos, CEO, First 5 Alameda County. “Yet, they often go unrecognized and undercompensated for their labor and ability to give individualized, culturally connected care. At First 5, we support the conditions that allow families to thrive, and getting this money into the hands of these caregivers and families at a time of heightened financial stress for parents is part of that commitment.”
Family, Friend, and Neighbor Caregivers Can Now Opt Into $4,000 Grants to Help Bolster Economic Stability and Strengthen Early Learning Experiences
By Post Staff
Today, First 5 Alameda County announced the distribution of $4,000 relief grants to more than 2,000 Family, Friend, and Neighbor (FFN) caregivers, totaling over $8 million in the first round of funding. Over the full course of the funding initiative, First 5 Alameda County anticipates supporting over 3,000 FFN caregivers, who collectively care for an estimated 5,200 children across Alameda County. These grants are only a portion of the estimated $190 million being invested into expanding our early childcare system through direct caregiver relief to upcoming facilities, shelter, and long-term sustainability investments for providers fromMeasure C in its first year. This investment builds on the early rollout of Measure C and reflects a comprehensive, system-wide strategy to strengthen Alameda County’s early childhood ecosystem so families can rely on sustainable, accessible care,
These important caregivers provide child care in Alameda County to their relatives, friends, and neighbors. While public benefits continue to decrease for families, and inflation and the cost of living continue to rise, these grants provide direct economic support for FFN caregivers, whose wages have historically been very low or nonexistent, and very few of whom receive benefits. As families continue to face growing financial pressures, especially during the winter and holiday season, these grants will help these caregivers with living expenses such as rent, utilities, supplies, and food.
“Family, Friend, and Neighbor caregivers are lifelines for so many children and families in Alameda County,” said Kristin Spanos, CEO, First 5 Alameda County. “Yet, they often go unrecognized and undercompensated for their labor and ability to give individualized, culturally connected care. At First 5, we support the conditions that allow families to thrive, and getting this money into the hands of these caregivers and families at a time of heightened financial stress for parents is part of that commitment.”
The funding for these relief grants comes from Measure C, a local voter-approved sales tax in Alameda County that invests in young children, their families, communities, providers, and caregivers. Within the first year of First 5’s 5-Year Plan for Measure C, in addition to the relief grants to informal FFN caregivers, other significant investments will benefit licensed child care providers. These investments include over $40 million in Early Care and Education (ECE) Emergency Grants, which have already flowed to nearly 800 center-based and family child care providers. As part of First 5’s 5-Year Plan, preparations are also underway to distribute facilities grants early next year for child care providers who need to make urgent repairs or improvements, and to launch the Emergency Revolving Fund in Spring 2026 to support licensed child care providers in Alameda County who are at risk of closure.
The FFN Relief Grants recognize and support the essential work that an estimated 3,000 FFN caregivers provide to 5,200 children in Alameda County. There is still an opportunity to receive funds for FFN caregivers who have not yet received them.
In partnership with First 5 Alameda County, Child Care Payment Agencies play a critical role in identifying eligible caregivers and leading coordinated outreach efforts to ensure FFN caregivers are informed of and able to access these relief funds.FFN caregivers are eligible for the grant if they receive a child care payment from an Alameda County Child Care Payment Agency, 4Cs of Alameda County, BANANAS, Hively, and Davis Street, and are currently caring for a child 12 years old or younger in Alameda County. Additionally, FFN caregivers who provided care for a child 12 years or younger at any time since April 1, 2025, but are no longer doing so, are also eligible for the funds. Eligible caregivers are being contacted by their Child Care Payment Agency on a rolling basis, beginning with those who provided care between April and July 2025.
“This money is coming to me at a critical time of heightened economic strain,” said Jill Morton, a caregiver in Oakland, California. “Since I am a non-licensed childcare provider, I didn’t think I was eligible for this financial support. I was relieved that this money can help pay my rent, purchase learning materials for the children as well as enhance childcare, buy groceries and take care of grandchildren.”
Eligible FFN caregivers who provided care at any time between April 1, 2025 and July 31, 2025, who haven’t yet opted into the process, are encouraged to check their mail and email for an eligibility letter. Those who have cared for a child after this period should expect to receive communications from their child care payment agency in the coming months. FFN caregivers with questions may also contact the agency they work with to receive child care payments, or the First 5 Alameda help desk, Monday through Friday, from 9 a.m. to 5:00 p.m. PST, at 510-227-6964. The help desk will be closed 12/25/25 – 1/1/26. Additional grant payments will be made on a rolling basis as opt-ins are received by the four child care payment agencies in Alameda County.
Beginning in the second year of Measure C implementation, FFN caregivers who care for a child from birth to age five and receive an Alameda County subsidized voucher will get an additional $500 per month. This amounts to an annual increase of about $6,000 per child receiving a subsidy. Together with more Measure C funding expected to flow back into the community as part of First 5’s 5-Year Plan, investments will continue to become available in the coming year for addressing the needs of childcare providers in Alameda County.
About First 5 Alameda County
First 5 Alameda County builds the local childhood systems and supports needed to ensure our county’s youngest children are safe, healthy, and ready to succeed in school and life.
Our Mission
In partnership with the community, we support a county-wide continuous prevention and early intervention system that promotes optimal health and development, narrows disparities, and improves the lives of children from birth to age five and their families.
Our Vision
Every child in Alameda County will have optimal health, development, and well-being to reach their greatest potential.
Learn more at www.first5alameda.org.
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