Investing is a difficult decision during the COVID-19 pandemic. Illinois legalized adult-use cannabis at the beginning of 2020 and the COVID-19 pandemic causes major delays for many individuals who involve themselves with this business. Many application fees for these licenses are nonrefundable and individuals hope for the best. On top of that, cannabis applications during COVID-19 are difficult because of the economy.
Our cannabis business consultants at Quantum 9 explain the current Illinois environment with cannabis applications.
COVID-19 and Cannabis Applications
Since the COVID-19 pandemic has affected the economy negatively, investing for cannabis becomes risky. Cannabis is a mostly white and male industry. So, this makes it difficult for minorities who invest in this competitive business.
On top of that, federally charted banks and small business loan programs are off-limits since cannabis is federally illegal. This means you need to know people with money to invest in this demanding business. This makes the COVID-19 pandemic and cannabis applications a difficult combination since individuals have investment fear.
Investing for businesses is difficult during this time.
As featured on Herald & Review, our CEO at Quantum 9 states that many investors are sick and out of commission. He also says that “it’s slowed investment capital to almost nothing.” He follows by saying that most investment funders usually have another business. Lastly, Mayes mentions that “any disposable income is not going to a secondary investment; it’s going to there primary business.”
All in all, Mayes hopes state regulators show flexibility in Illinois cannabis applications during the COVID-19 pandemic.
Illinois Cannabis Licenses and COVID-19
As mentioned, 2020 was the year that cannabis became legal for adult-use in Illinois. Illinois prepared to award cannabis licenses in May and July. COVID-19 pushed back results for cannabis applications and they were announced in September.
The state also gives preferences to Illinois cannabis applicants with social equity. Social equity helps minority groups enter the cannabis industry. Although this may sound nice, the application process during COVID-19 for cannabis licenses is difficult.
All in all, these applications take time, and attention to detail is important. So, make sure to contact our cannabis business consultants at Quantum 9 for help with these applications.