The Denver Metropolis Council on Monday devoted $15 million in marijuana gross sales tax cash to a brand new funding fund that may assist minority- and women-owned companies.
The Herman Malone Fund, named for the late Denver minority enterprise activist and former chairman of the Nationwide Black Chamber of Commerce, is primed to spend money on dozens of native companies over the following three years after the council’s vote.
The funding — $15,187,405, in keeping with metropolis paperwork — will likely be drawn from 1% of the town’s marijuana gross sales tax income by way of the top of June 2025. It will likely be paid to the New Neighborhood Transformation Fund-Denver, a fledgling enterprise capital entity devoted to supporting underserved communities, particularly Colorado’s Black, Indigenous and Individuals of Coloration, or BIPOC, entrepreneurs.
Denver’s monetary dedication will develop the investments already dedicated to the New Neighborhood Transformation Fund-Denver to $24 million, in keeping with a metropolis information launch. Denver’s financial growth workplace is already eyeing two one-year extensions to the contract with hopes that the fund will develop right into a $50 million revolving fund that may be a long-term asset to the town’s financial growth efforts, in keeping with a information launch.
Metropolis Council voted unanimously for the contract as a part of its consent agenda Monday, signaling broad assist. Earlier than the vote, District 11 Councilwoman Stacie Gilmore known as up the decision for feedback so she might have a good time it changing into actuality. She had been speaking to Mayor Michael Hancock about making a fund just like the Malone Fund since early this yr, she mentioned.
“We’re trying ahead to kicking this off and seeing how effectively it helps out our small companies,” Gilmore mentioned, including that she hopes it turns into a everlasting characteristic of the town’s small enterprise assist technique.
The Malone Fund is designed to push again on traditionally racist and discriminatory practices within the finance trade which have prevented minority-owned companies from rising and thriving, in keeping with the town. Hancock previewed the launch of the fund in his 2022 State of the Metropolis tackle.
On Friday, on the Colorado Black Spherical Desk’s annual social fairness summit, Adrina Gibson, the director of the town’s Division of Small Enterprise Alternative, spoke about what the fund will imply for the minority-owned enterprise neighborhood. Metropolis officers count on the fund to spend money on 100 companies by way of the lifetime of the $15 million contract but in addition present recommendation and technical help to no less than 900 extra. The fund will faucet advisers and consultants to assist with that work with the objective that as many as 50% of these contractors are additionally minority- or women-owned enterprise enterprises.
“That is going to be going to licensed small companies to noncertified small companies, nonprofits, you identify it,” Gibson mentioned of the funding cash on the social fairness summit. “Along with that, we’ve got small companies that will likely be offering technical sources to different small companies. So it’s fairly actually an ecosystem.”
The town is seeking to lease house for a brand new entrepreneurship middle in Northeast Park Hill. That house would supply places of work for the New Neighborhood Transformation Fund-Denver and its companions, in keeping with a information launch.
“Historic inequities and systemic marginalization proceed to forestall Denver’s underserved enterprise homeowners from scaling to sustainable progress and constructing multi-generational wealth,” Hancock mentioned in an announcement. “That’s why I proposed that Denver dedicate 1% of our retail marijuana gross sales tax charge for this bold, community-centered funding fund for deprived corporations.”