Vermont’s Cannabis Control Board has temporarily paused the acceptance of new retail and tier two cultivation license applications, WCAX reports. The decision, aimed at addressing the growing issue of retail saturation, comes as the state’s cannabis market faces numerous challenges. Board Chair James Pepper highlighted several issues plaguing the industry, including the inability to secure traditional bank loans, lack of bankruptcy protection, and high tax burdens that other businesses do not face.
“You can’t get a bank loan to start a cannabis company. You can’t have a line of credit to make ends meet at the end of the month. If you’re short on cash, you don’t have bankruptcy protection. You have to pay exorbitant taxes,” Pepper said to WCAX.
Vermont’s cannabis market has seen rapid growth since legalization, with more than 80 dispensaries currently in operation. However, about 30% of the state’s communities prohibit retail operations, leading to what Pepper described as an “unnatural distribution” of licenses. Since the program’s launch in October 2022, the state has issued just over 90 retail licenses, and only two cannabis retailers have shut down.
Individuals looking to apply for new retail or tier two cultivation licenses have until November 15 before the pause goes into effect. The state continues to process 10 pending dispensary applications.
