"Cannabis business advisors” will provide advice and loans to help businesses move out of the black market

Cannabis growers in the B.C. are getting some help to transition out of the black market as part of a newly announced program that could see participants qualify for loans of up to $500,000.

B.C.’s Ministry of Social Development and Poverty Reduction has set aside $675,000 to help an estimated 2,500 small growers join the legal cannabis industry. The money will be disbursed through the Community Futures Central Kootenay, a non-profit organization focused on economic development.

“This program recognizes the potential for the Kootenay region to support people with local and sustainable employment opportunities,” Shane Simpson, Minister of Social Development and Poverty Reduction, said in a release. “It will help cannabis businesses get off to a good start with a solid and sustainable plan to create jobs that support local families,” Simpson said.

A team of “cannabis business advisors” hired by Community Futures will be available to help growers — some of whom could qualify for loans of up to $500,000 — transition out of the black market.

“A failure to transition these producers would not only jeopardize our goal to reduce the illegal market, it would also be a lost opportunity to create stable jobs that support families and communities,” Public Safety Minister and Solicitor General Mike Farnworth told the Georgia Straight.

On its website, Community Futures notes it is currently working with five businesses to help them create a business plan and lay the groundwork for successfully obtaining licences to grow from Health Canada. It plans to offer assistance to four small growers a month beginning in the new year.

Many marijuana producers in B.C. were left behind during legalization as large companies scooped up licences that were reserved for producers with buildings already in place to support their operations, said Jamie Shaw, a spokesperson for Pasha Brands. “It streamlines how many applications they get,” Shaw said, but added that it put small growers at a disadvantage as they tried to overcome municipal obstacles to securing a facility to grow the drug.

This forced B.C.’s abundant producers to turn to the black market, which the government is now trying to address as it sees potential sales slip away. The province brought in $19.5-million in legal revenue through June of this year, just 15 percent of the business that Alberta has been doing next door.

The Ministry of Public Safety is also employing a “Community Safety Unit” to crack down on unlicensed dispensaries in the province.

Want to keep up to date on what’s happening in the world of cannabis? Subscribe to the Cannabis Post newsletter for weekly insights into the industry, what insiders will be talking about and content from across the Postmedia Network.