On Monday, City Council unanimously approved using around $15 million of Denver's cannabis sales tax for the city's first investment program focused on minority- and women-owned businesses.
The fund makes up 1% of cannabis sales tax revenue. It's named after the late Herman Malone, former chairman of the National Black Chamber of Commerce and local advocate for minority businesses.
"The Fund will focus on strengthening Denver's economic diversity while providing quality job opportunities, ensuring a pipeline of entrepreneurs and small business startups, and creating generational wealth for Denver's business owners who have historically lacked investment opportunities," the Denver Economic Development and Opportunity office wrote in a city presentation on the fund.
It's part of a larger city and nationwide effort to promote equity in the business world, where women and people of color are often underrepresented and have historically had less access to capital.
In 2018, Denverite reported that city contracts rarely go to companies owned by women or minorities.
The fund isn't alone in its goal to improve equity in business. At the start of this month, the state opened a second wave of business grants for minorities in the cannabis industry through its social equity license program.
The $15 million will go through the New Community Transformation Fund-Denver, a venture capital fund for underrepresented groups, and run through July 2025, with the possibility for extensions. The city estimates that the fund will generate $4 to $5 million annually.
The program aims to invest in 100 businesses and provide support to hundreds more over the course of the three years. Prospective applicants will apply through the New Community Transformation Fund-Denver.
