Cannabis industry partnership sparks criticism from Opposition

The government is facing criticism for potentially diverting resources from small businesses to support the fledgling medicinal cannabis industry.

Opposition spokesman on Energy, Small Business, Entrepreneurship and Housing, Senator Ryan Walters has expressed concern over a partnership between the Barbados Medicinal Cannabis Licensing Authority (BMCLA) and Trust Loans Fund Barbados, warning it could undermine support for micro and small enterprises.

The partnership between the BMCLA aims to provide crucial startup capital to approved licence holders in the cannabis industry who have been struggling to secure loans from traditional lending agencies.

However, in a press release, Walters opposed the partnership.

“The government must ensure that the Barbados Trust Fund Limited remains focused on its original mandate of supporting micro and small businesses,” he insisted.

“The medicinal marijuana industry has struggled to become operational despite significant government funding. Some major challenges include its clients’ inability to access banking services, and high operational costs. Application fees are close to $5 000, while licence fees range from around $29 000, to close to $1 million. The industry was never designed for small business owners.”

Walters further questioned if BTFL even had the resources to help support such an industry with high expenses tied to its projects. He also queried how, given the reluctance of overseas banking institutions to do business with cannabis enterprises, Trust Loan Fund could begin to support the industry.