At least eighteen U.S. states now have social equity elements in their cannabis licensing programs, and Salal Credit Union is aligning with those states—and forging ahead to help potential social equity candidates in other states, as well. Here in Business Services, we’ve developed our new Social Equity program designed to offer benefits to cannabis licensees who hold a Social Equity cannabis license or are otherwise qualified through other social equity criteria.
Social equity includes developing, strengthening, and supporting policies that prioritize distributing resources to individuals and communities who have been marginalized.
Last year, we began exploring options for supporting Social Equity candidates, and conducted research into the Social Equity programs enacted by the states in which we have the most cannabis business members. Key findings in our report included how the War on Drugs has disproportionately impacted Black, Latino, and Indigenous individuals and communities and that cannabis prohibition, in particular, has been a tool used by proponents of the War on Drugs to marginalize and harm Black, Latino, and Indigenous communities.
In comparison to traditional businesses, the cannabis industry has had limited access to banking services, and this has been even more true for businesses that are owned by Black, Latino, and Indigenous people. While states have found that making steps toward equity in the cannabis industry alone cannot repair the intergenerational impacts on Black, Latino, and Indigenous communities, they have determined that state-created Social Equity cannabis licenses can play an important role in mitigating these harms.
With Social Equity cannabis licenses and their newly formed businesses, social equity licensees need the same solid banking assistance available to other cannabis businesses. Access to community partnerships and discounted account services will help make banking more equitable. Through our new Social Equity program, Salal will conduct special outreach to Social Equity applicants through personal contact and deliverable materials to extend our reach to new businesses seeking supportive financial services.
Primary benefits of Salal’s Social Equity program include reduced new account application fees, as well as waived minimum-balance fees for the life of the account. You’ll have the attention of a dedicated Account Officer, as well as the high-touch service of our Business Services team, and we’ll assist you in partnering with community organizations for financial education and technical assistance. We also plan to work with state agencies to create broader awareness of the importance of social equity, and we’ll be designating a Salal ambassador to champion our program.
Salal’s Business Banking Sales Manager, Christoffer McCollom, emphasizes that, for over a decade, Salal Credit Union has been a leader in cannabis banking. “That continues through the launch of our Social Equity program, which reduces barriers and promotes equity and participation in the cannabis market by those most adversely impacted by the War on Drugs,” he elaborated. “We can’t fix the inequities of the past, but we can absolutely play a prominent role in building a brighter and more equitable future.”
We welcome all Social Equity cannabis licensees in the states that we serve to contact us about opening a business account or maximizing your Social Equity benefits. Please reach out to your Account Officer for more information, or contact the Salal Business Services team at 206.298.9398 or BusinessServices@SalalCU.org.
