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Forbes
a day ago
- Business
- Forbes
New York Gave Latino Cannabis Entrepreneurs A Head Start—But Can They Keep It?
The Happy Munkey team: John Ibonnet, Ramón Reyes, Vladimir Bautista and Omar Ibonnet (L-R). Some call New York the most inclusive cannabis market in America for Latino entrepreneurs. But behind the licenses and headlines, the reality is more complex. New York legalized adult-use cannabis in 2021 with a bold proposition: put the people harmed by prohibition at the center of legalization. Prioritize justice-involved entrepreneurs. Make equity a target with teeth, not a tagline. For many Latino operators, that ambition translated into reality. In neighborhoods like Astoria, Dyckman and Bed-Stuy, Latino-owned dispensaries are now open for business. Entrepreneurs with lived experience—formerly incarcerated, legacy veterans, community builders—are staking their claim in the regulated market. Sometimes in the same zip codes where the plant once got them arrested. But is New York really the most inclusive cannabis market in the country? And what does inclusion mean once the confetti settles and the leases are signed? To find out, I spoke with Latino cannabis entrepreneurs from across the city. Most received Conditional Adult-Use Retail Dispensary (CAURD) licenses. Their reflections reveal a nuanced picture: the blueprint is solid, but execution remains fraught. Latina Entrepreneurs Still Face Higher Barriers While several Latino-owned dispensaries have opened across the city, Latina ownership remains far less visible. Mama Verde, co-founded by Christina Arez and Krystel Bloomfield, was awarded a CAURD license but has yet to open. Other efforts, like the dispensary licensed to Fernando Peña and Suzanne Furboter, have also faced delays. The scarcity of Latina-operated stores underscores the deeper challenges around capital, stigma and access still facing women of color in the industry. Still, a few Latina entrepreneurs are actively shaping New York's cannabis and accessories market. Elyssa Colon, a Puerto Rican Bronx native and co-founder of HighGarden NYC, blends hospitality and community leadership to create inclusive, women-led cannabis events and services. Kristina Lopez Adduci, founder of House of Puff, leads a Latina-owned brand focused on art-inspired accessories, bilingual education and stigma reduction, reimagining the cannabis experience for women and Latinos alike. 'We're not just running businesses,' said Miguel Brito, founder of The 1 Brand, in an exclusive interview. 'We're rewriting the narrative.' New York's Equity Promise When the Marijuana Regulation and Taxation Act (MRTA) passed in 2021, it set a new tone. The law set a goal for 50% of adult-use cannabis licenses to go to social and economic equity applicants, including people from communities disproportionately impacted by cannabis enforcement, minority- and women-owned businesses, distressed farmers and service-disabled veterans. Soon after, the Office of Cannabis Management rolled out the Conditional Adult-Use Retail Dispensary program. CAURD prioritized New Yorkers impacted by cannabis-related convictions, making them the first allowed to open licensed dispensaries. By the end of 2024, state data showed 315 provisional CAURD licenses had been issued. Over half went to individuals from Black and Latino communities. But equity in licensing doesn't always translate to representation across the industry. The same report noted that just 15% of workers in New York's cannabis supply chain identified as Hispanic or Latino, compared to 18% of the state's overall workforce. 'New York made equity a priority,' Brito said. 'But real inclusion means more than licenses.' The Legacy That Helped Shape New York's Equity Push Any conversation about Latino leadership in New York's cannabis market would be incomplete without Happy Munkey, the brand co-founded by Vladimir Bautista, from Harlem, and Ramon Reyes, from Washington Heights. Long before CAURD licenses existed, Happy Munkey was a movement. Part underground lounge, part media collective, part cultural catalyst. Happy Munkey co-founder Vladimir Bautista with U.S. Representative Adriano Espaillat — the first ... More Dominican American and first formerly undocumented immigrant elected to Congress, and current Chair of the Congressional Hispanic Caucus. As Bautista put it: 'In New York, Latinos are succeeding. We're owners of our own future. We're raising the Latino flag high and proud.' The pair built a cannabis lifestyle brand that celebrated the plant openly while pushing for its legalization. Through podcasts, videos and public events, Happy Munkey became a beacon for the city's legacy cannabis community. In 2024, they opened licensed dispensaries in both Dyckman and downtown Brooklyn, transforming years of grassroots organizing into fully legal retail operations. Happy Munkey Dispensary Happy Munkey's influence helped lay the foundation for the equity push that followed. Bautista and Reyes were among the first to prove that legacy-to-legal transitions were not only possible but essential to meaningful reform. In 2024, they were named to Forbes' Cannabis 4:20 list, joining other trailblazers reshaping the industry from its foundations. On The Ground: Latino Entrepreneurs Building Against The Odds Across the five boroughs, Latino cannabis operators are shaping the market in real time. Jeremy Rivera, a Puerto Rican entrepreneur and former justice-involved individual, co-founded Terp Bros in Astoria. Raised in Bushwick, Brooklyn, Rivera experienced incarceration for non-violent drug offenses. He now leads the Cannabis Retail Alliance of New York (CRANY) and advocates for equity across the state. 'I grew up in a system that criminalized people who looked like me for the very same plant I now legally sell,' he said. 'Opening my doors, in my neighborhood, as a licensed owner—that's powerful.' Rivera was among the first to open under CAURD. He believes the program created opportunity, but the path remains steep. 'The state gave people like me a real shot,' he said. 'But Section 280E taxes [the federal rule that blocks cannabis businesses from deducting standard expenses] plus stigma in our own communities and the lack of funding make survival tough.' Miguel Brito, a Dominican-American entrepreneur and founder of The 1 Brand, blends legacy experience with modern innovation. He built his career across cultivation, processing and compliance, and developed DabGo, a portable dab rig. He now operates in both New York and New Jersey. 'Equity isn't about getting mentioned in press releases,' Brito said. 'It's about staying open.' Alexander Norman, who spent years operating an unlicensed cannabis delivery service in New York, co-founded Budega NYC in Brooklyn. A Cuban-American entrepreneur, Norman transitioned from the legacy market into licensed retail through the CAURD program. 'New York has more Latino licensees than any other adult-use state,' he said. 'But without capital and solid business support, many of us could still get pushed out.' 'Personally, it's validated my legacy experience and pursuit,' Norman added. 'Professionally, I don't think I've proven much yet—other than that I can open a licensed dispensary. The jury's still out on whether it will succeed.' Louis W. Colón III, a Puerto Rican entrepreneur with a deep background in fashion and branding, co-founded Budega NYC. He previously held senior roles at FILA, Footlocker and Extra Butter, and now applies his design ethos to creating a dispensary experience rooted in Latino culture and pride. Budega NYC co-founders Alexander Norman & Louis W. Colón III 'It means the world to build something our people connect to,' he said. 'When someone walks into Budega and sees themselves reflected, it matters.' Other Latino-led cannabis businesses, such as Glenna & Co, Polanco Brothers and Con Bud, are also helping shape New York's evolving dispensary scene, adding to the momentum sparked by early equity pioneers. 'Giving the next generation an example of what work, creativity, respect, opportunity and community can build—that's what drives us,' Colón added. What Other States Tried—And Why New York Stands Out While New York's rollout had flaws, many operators say it still leads the country in Latino inclusion. Massachusetts saw modest progress. According to Rivera, roughly 15% of its social equity program participants are Latino. But access to capital and zoning headaches persist. In California, despite having the nation's largest Latino population, representation in cannabis remains minimal. 'There are advocacy groups and some local programs,' Brito said. 'But actual support—funding, mentorship, ownership—is still lacking.' New Jersey and Illinois built equity into their laws, but results have been inconsistent. Delays, legal challenges and unclear implementation have kept many out. 'Some states made good promises,' Brito said. 'New York actually started handing over keys.' 'Real inclusion requires more than good intentions,' Brito added. 'It needs funding, mentorship and accountability.' Where The System Still Breaks All the entrepreneurs interviewed pointed to a common truth: getting a license was just the beginning. Budega NYC Capital remains the biggest hurdle. Many CAURD operators entered the market without private investors or traditional banking relationships. 'We self-funded Budega,' Colón said. 'If more public programs helped cover buildouts or rent, fewer people would end up in bad loan deals.' Then there's Section 280E, the federal tax law that prohibits cannabis businesses from deducting ordinary expenses. 'For Latino entrepreneurs, especially those without cash reserves, 280E is a killer,' Rivera said. 'You're taxed on revenue, not profit.' Regulatory confusion only adds to the pressure. The compliance burden, zoning restrictions and shifting rules stretch already thin resources. Cristina Aranguiz Cristina Aranguiz, a Cuban-American cannabis operator who built a multi-state business without outside capital, echoed that sentiment. 'Licensing fees and start-up costs in cannabis can easily run into the hundreds of thousands or millions, and undercapitalized entrepreneurs, many of whom are Latino, struggle to compete,' she said in an interview a few months ago. 'At the same time, stigma around 'drugs' within some communities discourages talented professionals from entering the industry in the first place.' 'Equity doesn't mean surviving on fumes,' Brito continued. 'It means being given the tools to compete.' And finally, several operators raised the issue of cultural stigma—a quiet force still keeping some Latinos out of the industry. 'We need more education, outreach, and community conversations to shift how cannabis is viewed; not just as a substance, but as a legitimate business and opportunity for economic empowerment,' Rivera said. When Equity Falls Short: The CAURD Inc. Rebellion For many Conditional Adult-Use Retail Dispensary (CAURD) licensees, New York's equity experiment has yielded not opportunity but debt. 'Equity isn't just about who gets the license. It's about what comes next,' said Alex Ortecho, interim president of the Cannabis Association for Unified Retail Development (CAURD Inc.) and owner of Bronx Joint. 'If you don't have the infrastructure to back up your promises—capital, property access, legal protections—then your program isn't equitable, it's just symbolic.' Formed in 2024 by a cohort of CAURD licensees, CAURD Inc. emerged as a response to widespread frustration with New York's equity rollout, particularly the state-backed DASNY Social Equity Cannabis Investment Fund. Instead of offering the promised low-cost capital and turnkey locations, the program imposed inflated buildout costs, opaque billing and inflexible leases on licensees, according to the group. 'DASNY turned into a cautionary tale—an equity model built without market knowledge, cost controls or community voice,' said Dasheeda Dawson, a spokesperson for CAURD Inc. and the former founding director of Cannabis NYC. 'Instead of lifting licensees, it boxed them in.' Dawson described how licensees were saddled with over $1 million in buildout costs per store, sometimes for spaces valued far less, and faced rent and fees exceeding $30,000 per month, often without clear justification. 'The state failed to deliver on its promise to incubate businesses,' she said. 'It merely licensed them and left them to sink or swim.' The group has since outlined a bold recovery agenda: full loan forgiveness for DASNY-tied stores, real technical assistance for justice-involved entrepreneurs, flexible capital access, and a transparent, community-led oversight process. Without such reforms, Dawson warned, 'New York risks permanently damaging the credibility and purpose of its equity-driven framework.' Why This Matters Now The presence of Latino-owned dispensaries in New York is a signal. It shows that equity policy, when backed by intention, can work. 'We're not here to be a case study,' Rivera said. 'We're here to build legacies.' From the bilingual service counters to the locally hired staff, these entrepreneurs are shaping a new kind of cannabis economy. One that reflects the neighborhoods it serves. 'We're not asking for favors,' Brito added. 'We're asking for infrastructure. Equity is a process, not a pitch.' They aren't just surviving; they're fighting to thrive—sometimes quietly, sometimes loudly, always with purpose. Their storefronts aren't symbols. They're systems. And if New York can sustain them, it may prove what few other states have: equity doesn't end with a license. It begins with what happens after.
Forbes
26-06-2025
- Business
- Forbes
How The Debt Trap Limits Growth For Minority-Owned Small Businesses
How The Debt Trap Limits Growth For Minority-Owned Small Businesses For many women of color, launching a business often begins with a personal investment from their savings, such as maxing out a credit card, taking on a high-interest loan, or, more recently, relying on a Buy-Now-Pay-Later (BNPL) plan to secure inventory. Over time, employing these options can create a debt trap, where the business struggles to grow due to the additional funding necessary to manage the existing debt, limiting business growth, hurting credit scores and quietly capping the potential of thousands of small businesses. Minority-owned small businesses face a disproportionately high cost of capital. A University of Washington study found that Black business owners pay 3.1 percentage points more in interest than equally qualified white peers; Latino entrepreneurs pay 2.9 points more. Over time, those differences amount to an estimated $8 billion in excess interest payments annually; resources that could otherwise be used for business growth, hiring staff, or outreach efforts. As well, the Small Business Administration shows that 17.6% of Black-owned firms and 14.9% of Latino-owned firms rely on personal credit cards for startup funding, compared to just 10% of white-owned businesses. With average interest rates over 20% and balances often carried month to month, compounding interest erodes cash flow, limiting how much can be reinvested in operations. A problem that has inspired the creation of grants initiatives to supply the gap, according to Latasha Randle, strategy and small business program manager at Block Advisors. The Fund Her Future Grant was created in response to deep disparities identified in small business funding, for example. 'As we began to talk to small business owners, we identified the funding gap between men and women. For women of color, the gap was even greater,' Randle said in our conversation in the Brown Way To Money podcast. Knowing about the effects of a debt trap sets women of color entrepreneurs at an advantageous position to analyze and understand the cycle of debt prior to applying or using it in the business context. This article will explore how those debt traps form, why they persist, especially in periods of inflation, and what strategies and systemic shifts are emerging to address them. Debt Traps In The Age Of Inflation And Fintech The economic environment of the past few years has made it harder to escape the debt trap. Between 2021 and 2024, inflation surged, prompting the Federal Reserve to raise interest rates at a historic pace. For small business owners already dependent on credit, borrowing costs increased. To bridge cash flow gaps, many turned to BNPL services or ramped up credit card use. Some opted for fintech platforms that offer faster approvals and lower credit thresholds. For many Black and Latino entrepreneurs, fintech tools provided access when traditional banks did not. But access came with trade-offs: shorter repayment periods, high effective APRs, and opaque lending terms that increased financial vulnerability. 'Buy Now, Pay Later' offers an immediate funding solution for small-ticket purchases. It's helping bring more people into the financial system,' said Amanda Estiverne-Colas, Founder of AGE Advisor, Financial Inclusion Advocate, and board member at NAFLI. 'For individuals who may not qualify for traditional credit cards or who want to avoid hard credit pulls, BNPL provides access to flexible payment options without many of the historical barriers.' Estiverne-Colas notes that when designed thoughtfully, BNPL has the potential to be an inclusive financial stepping stone. 'It can help normalize access to responsible credit for communities that have often been excluded. But there are challenges... Without clear disclosures and embedded education, it can create confusion around repayment terms or lead to unintentional debt stacking.' Recently, the credit industry has recognized this evolving role of BNPL in the financial lives of Americans. In a move that could have long-term implications for entrepreneurs, FICO recently announced it will incorporate BNPL activity into its credit scoring models for the first time. The newly launched FICO® Score 10 BNPL and FICO® Score 10 T BNPL aim to better reflect modern repayment behaviors by factoring in BNPL loans alongside traditional credit data. For business owners who rely on BNPL to manage supply purchases or short-term expenses, this shift could be a double-edged sword: responsible use may help build credit, but stacking multiple BNPL plans (or missing payments) could now have direct consequences on creditworthiness. Digital exclusion added another layer. According to Pew Research, 35% of Black adults and 29% of Latino adults lack home broadband access, making it harder to compare loan terms or access alternative funding sources. For those running businesses entirely from a smartphone, this creates an information gap that limits financial agility. Meanwhile, traditional financial tools have not caught up to the realities of modern entrepreneurs. 'Many are still built on legacy systems that don't match the needs of modern entrepreneurs, solopreneurs, or gig workers,' Estiverne-Colas added. 'As a result, individuals are forced to rely on consumer-based tools—personal checking accounts, P2P apps, and personal credit cards—to run their businesses.' The consequences of this financing burden are clear. Minority-owned businesses are more likely to delay hiring, postpone expansion, or scale back operations due to financial strain. What is often missing from the fintech or bank offerings is inclusivity by design. 'Inclusive design means building for a variety of users and realities: cash-flow-based products, alternative underwriting models, and built-in financial coaching,' Estiverne-Colas explained. Side Hustles And The Risk Of The Debt Trap Many women of color are starting businesses as side hustles. Selling products online, managing freelance work, or running a mobile service as a way to supplement income. But without clear financial tools and systems or a formal business structure, side hustlers are particularly vulnerable to falling into debt traps. As it is common to use personal credit cards to pay for supplies, advertising, or subscriptions, many side hustlers do not seek business credit early because they do not yet see themselves as business owners. Instead, they are more likely to turn to high-interest, personal financing just to keep operations running. 'Today's financial tools must be designed for a modern workforce, not just for traditional 9-to-5 employees,' said Estiverne-Colas 'Solopreneurs, gig workers, and first-time business owners represent one of the fastest-growing segments of the economy, yet most financial products still cater to a narrow definition of 'stable income' and 'prime credit.'' As BNPL and credit card use become more common funding tools, it is critical to approach borrowing with a long-term lens. That means tracking repayment terms, separating side hustle and personal expenses where possible, and understanding how every transaction might affect your credit score. Building A Path Out Of The Debt Trap Escaping the debt trap begins with recognizing how it shows up in day-to-day operations not just as a balance sheet item, but as a barrier to decision-making, growth, and stability. Common indicators include relying on credit cards to cover recurring operating costs, delaying payroll or vendor payments due to loan obligations, or avoiding financing conversations due to fear or fatigue. These are not failures; they are signals that a more sustainable strategy is needed. Protection starts with financial structure and support, which includes separating personal and business finances, creating cash-flow plans that prioritize debt servicing without starving growth, building relationships with mission-aligned lenders before capital is urgently needed, and leveraging community-based financial support systems and mentorship networks. Recognizing a cultural component is needed to break the silence around money. 'The more we foster open conversations about money [...] the more solopreneurs and first-time entrepreneurs will feel empowered to engage, ask questions, and advocate for products that meet their needs,' Estiverne-Colas said. 'Financial shame thrives in silence. Financial confidence grows in community.' Ultimately, the burden of high-cost debt should not fall solely on the entrepreneur. While inflation and rising interest rates have intensified financial pressure across the board, the impact has been disproportionately severe for those already operating at a capital disadvantage, which often are women of color entrepreneurs. Until broader systems are reimagined with inclusivity at their core, and entrepreneurs gain greater awareness of how financial decisions shape long-term outcomes, the most effective defense remains clarity, strategic planning, and informed decision-making.
