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New Jersey Marijuana Regulator Says Rushing Adult-Use Licensing Will Imperil Small Businesses

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New Jersey Marijuana Regulator Says Rushing Adult-Use Licensing Will Imperil Small Businesses

2022-02-25
Jersey City plant shop owner Shayla Cabrera has eyed the cannabis industry for years, dreaming of growing and selling her own cannabis crop in a market where sales are expected to top one billion dollars the first year.

As a Black woman, Cabrera has an edge in the highly competitive race to snag the limited number of cultivator licenses. New Jersey has pledged to prioritize applicants from marginalized populations, as it looks to atone for a war on drugs that ravaged communities of color.

That laudable goal has created a problem: Some established operators are trying to enter the industry through the diversity door. A California cultivator found Cabrera on a directory of diverse business owners and wooed her with a flight to their West Coast farm and an attractive business deal.

Cabrera turned them down.
“It’s a predatory practice that’s happening in multiple states, under the guise of social equity,” she said. “The government says they’re encouraging social equity, but straight up, Black people are being left out.”

Eventually, more and more people started hearing about their venture and threw their funds behind Woah Flow. They leased a building in the city, ready to get rolling.

But once the pandemic hit and the industry remained in limbo, they again had to weigh the cost of the venture. It was something other, more established applicants probably didn’t have to think about, he said. They terminated the lease and ended up securing a new location in Trenton’s Mill Hill Historic District.

Cabrera, 33, who runs a plant shop in Jersey City’s McGinley Square neighborhood, echoed the concerns of paying for overhead without knowing when the market will launch. Partnering with a well-known brand would have given her some flexibility—and alleviated a lot of stress—but she ultimately valued being the face of her own brand without being used by a big corporation.

For some people, she said, there’s no other way to get a foot in the door without partnering, but she is urging the CRC to take a step back and “give social equity and small business applicants a fair chance at this market.”

“Every month this is delayed, it edges more people out of the market who are the little guys. And as Black people, as the underdog, we’re really bootstrapping this already,” she said.
 
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