Creating a cannabis business will cost you thousands

DECATUR, Ill. (WAND) - Illinoisans should expect to see more cannabis businesses, but it doesn't mean dispensaries.

The Illinois Department of Financial & Professional Regulation will reward 75 new dispensaries. Then the Illinois Department of Agriculture will reward 40 licenses.

Reports show the state is expecting more than $50 million in tax revenue and licensing in 2020. Lawmakers believe it will be more than $140 million in 2021. The Cannabis Business Association in Illinois estimated thousands of jobs for people.

"(About) 65,000 jobs will be created by the new cannabis industry," said Pam Althoff, who was a politician. She's currently the executive director of the CBA.

There are multiple options for how one can explore the business of cannabis. One can own a dispensary, become a craft grower or infuser, or get into transporting.

"It's an opportunity for individuals who were disproportionately impacted by the war on drugs," Althoff said.

The business of cannabis is worth billions and reports show it is predominantly white-owned. Althoff said the Pritzker administration campaigned in making sure the playing field for people of color is fair, thus creating the social equity program.

The social equity program involves helping applicants create a business plan, providing access to low-interest loans and reduced licenses and fees.

Regular Application Fee

$5,000, non-refundable

Social Equity Application Fee

$2,500, non-refundable

Regular License Fees

$40,000 for Craft Growers
$5,000 for Infusing
$10,000 for Transporting
$60,000 for Dispensaries

Social Equity License Fees

$20,000 for Craft Growers
$2,500 for Infusers
$5,000 for Transporting
$30,000 for Dispensaries

In order to benefit from social equity, applicants should at least own 51% of the business and should:

- Have lived in a disproportionately impacted area in five of the past 10 years. Disproportionately impacted areas are census tracts that have high rates of arrest and incarceration related to cannabis offenses, among other qualifications including high poverty and unemployment.
- Have been arrested for, convicted of or adjudicated delinquent for cannabis-related offenses eligible for expungement, including cannabis possession up to 500 grams or intent to deliver up to 30 grams.
- Have a parent, child, or spouse that has been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including possession up to 500 grams or intent to deliver up to 30 grams.

Applicants should also have more than 10 full-time employees, and more than half of those employees should:

- Currently reside in a disproportionately impacted area.
- Have been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including cannabis possession up to 500 grams or intent to deliver up to 30 grams.
- Have a parent, child, or spouse that has been arrested for, convicted of, or adjudicated delinquent for cannabis-related offenses eligible for expungement, including possession up to 500 grams or intent to deliver up to 30 grams

The state has a map one can look through to see if they qualify.

"It's [the Social Equity Program] a good thing," said Lisa Stanley, who is the supervisor for the Decatur Township. She said people with past cannabis offenses have not reached out to her about creating a business. Stanley mentioned how she wasn't aware of this kind of opportunity.

"I would really like to learn more and I would hope they would bring more information for everybody to study," Stanley said.

Actually, the state does offer workshops, but they are located in Chicago. The SEP raises some questions for those who are expunged.

Darrell Reynolds had a history with selling cannabis. He's no longer into selling, he's a contractor now. To Reynolds, being an owner of a cannabis business is a tough path to walk on.

"I never thought about getting expunged so I can be legalized," Reynolds said. "To clean up your record to get expunged to sell marijuana is a hard pill to do. As I think of it, you got to educate yourself."

Cannabis advocates, however, believe this is business is worth pursuing.