Business
Can Cannabis Help Cure Government and Bank Revenue Shortfalls?
Can Cannabis Help Cure Government and Bank Revenue Shortfalls?
By Andy Montgomery | Published July 1st, 2020
As COVID-19 again rises its ugly head amidst an opening of economies around the United States, it is becoming increasingly clear that a snap back of the economy is a naïve notion at best. Americans will be living with this unwanted new normal for some period of time to come. The aftermath remains uncertain, but the present is already having significant effects on our economy and way of life. Government stimulus, which comes at a long-term cost, has provided a boost of adrenaline, but will eventually wear off. We are in the midst of a financial recession and there are no clear precedents to draw on which provide a guide to its severity or longevity. This means that both governments and banks need to find alternative sources of revenue.
SAFETY DRAINS REVENUES
Different from “the Great Recession” which began in 2008, this economic crisis will be far more impactful to Main Street businesses and not contained to an asset bubble. Consumers just simply stopped all at once from popping into local businesses and, even with moderate openings, many retailers and restaurants have no chance to recover to pre-COVID conditions. Add to that, virtual learning behaviors that are quickly being integrated as preferences in our daily lives. This lack in demand will work its way through various other supply chains and continue to wreak havoc on our economy for some period of time.
The impact of decreased tax revenues from Main Street economies is already being felt in municipalities and states around the nation. It comes at a time in which they are already tasked with providing for the safety of citizens through extraordinary and costly measures. This is quickly depleting the reserves of governments; most of which have no good alternatives to raise revenue.
BANKS HAVE AND WILL BE IMPACTED
Similarly, banks have only begun to feel the full impact of the crisis. In the first quarter of 2020, bank revenues were down a whopping 70%. Banks will certainly see some revenue boost as a result of the massive PPP effort, but the stimulus will wear off for them also. Almost every commercial business in the country has been negatively impacted by COVID-19 and that will work its way into banks’ lending portfolios, earnings and liquidity. The building momentum in the third and fourth quarters of credit contractions and bank layoffs could be as significant as 2008.
CANNABIS TAX REVENUES REQUIRE SAFE BANKING
One source of revenue that is yet to be adequately optimized in the 33 states that have approved some form of legalized cannabis is maximizing the tax revenue from this growing industry. Most state and local governments are collecting a fraction of the tax revenue that they intended from cannabis. That is mostly because the illegal trade of cannabis is in full supply and provides harsh competitive pricing pressure on businesses that want to comply with the laws and regulations. Law enforcement will readily admit that they do not have the financial resources or public will to put a dent in the illegal trade. This keeps legal cannabis from operating at their optimum potential and from paying the tax revenues that are increasingly needed by state and local governments.
During a press conference in April 2020 New Mexico Governor Michelle Lujan Grisham (D) stated that she wished the legalization of recreational marijuana would have passed earlier this year as it would have offered additional revenue for a state with limited resources and a large outbreak of COVID-19. “If there was ever a time for wishful thinking, I wish we had passed recreational cannabis because that would be $100 million.”
Also in April, the U.S. Virgin Island Governor Albert Bryan Jr (D) began the process of revisiting cannabis legalization stating, “We have taken the time to gather further public input as well as address the concerns of the individual legislators,”…“As the economic disaster, the last few weeks has created has affected the [Government Employees Retirement System] greatly it is our hope that we can have a greater sense of exigency in implementing all the things that can help us regain solvency.”… “Certainly, cutting the annuity of retirees by 30 percent cannot be the path,” he said.
- Oklahoma’s medical marijuana sales increased 21 percent in April 2020. The State could possibly sell $700 million before the end of the year.
- In April, Colorado’s retailers sold almost $150 million in marijuana and related products.
- In May, Illinois retailers sold almost $45 million worth of marijuana and related products, exceeding projections.
- Florida Department of Health stated that the week of March 13th – March 19th, more medical marijuana was sold in one week since the states program began in 2017.
IT IS A LAW ENFORCEMENT ISSUE
One way around relying on law enforcement to clean up the cannabis businesses is to have the banks do it. That is why 34 Attorney Generals from states and territories across the country have signed a letter to Congress in support of the cannabis “Safe Banking Act.” But, as cannabis is still illegal federally, banks have no clear mandate or rules to follow from federal regulators to safely bank cannabis. However, according to FinCEN data, approximately 525 banks and 185 credit unions knowingly banked cannabis clients in March 2020. The Chairwoman of the FDIC, Jelena McWilliams, gave a clue as to how the federal regulator of banks would feel about their members banking cannabis as she has integrated the topic in all of her recent speeches and said that regulators would be okay with its members banking cannabis as long as they followed the FinCEN guidance and state regulations.
Denver, Colorado’s Audit Committee released a report stating, “The Treasury Division’s Audit Unit Is Not Effective or Efficient at Ensuring All Marijuana Taxes Are Reported and Paid.” The audit also lists specific findings and recommendations.
Recently, Colorado’s Attorney General Phil Weiser tweeted, “Crimes at #cannabis businesses are often driven by the fact that so many of them are all cash businesses. That’s why we led a coalition of State AGs to support @RepPerlmutter’s work on the #SAFEBanking Act, allowing such companies access to safe banking.”
COULD THIS BE A WIN-WIN?
The bottom line is that if banks capitalized on the nascent and growing cannabis industry it could add liquidity and profit at a time when they need it the most. To safely bank cannabis they would need to vet the businesses and ensure they are complying with all of the laws and regulations, But, by integrating more cannabis related businesses into the banking system and migrating them away from dealing in an all cash world, the money goes directly into the economy and adds very inexpensive deposits and a new source of fees for banks. It also makes those cannabis related businesses that are not legal and compliant,recognizable outliers that are easier to spot for law enforcement as they will continue to be forced to trade and live using all cash.
Andy Montgomery is a former bank CEO with more than 25 years of experience in the financial services industry. His experience includes founding community banks and working in executive positions for regional and money center banks. He currently is the founder and CEO of HDCS, Inc., which provides consulting for financial institutions in engaging with higher-risk depositors.
Business
Ontario Set to Open Newest Play Street Museum Location
A children’s museum and indoor play area that lets imaginations wander open soon to local community
Play Street Museum, an interactive children’s museum and indoor play area purposefully designed to encourage a young child’s sense of independence, exploration, and creativity, will be opening its newest franchise location in the coming weeks in Ontario, California. Locally owned by Teresa and Sergio Carreras, the coming location marks a key milestone in an expanding franchise program, with its first location in California.
“We’re thrilled to bring the newest Play Street Museum to Ontario for our local community to enjoy,” shared Teresa and Sergio Carreras. “After visiting Play Street Museum with our grandchildren, we knew we had to bring a location to California, and we’re excited to share it with the community and hope it serves Inland Empire families in big ways.”
“We’re proud empty nesters and even prouder grandparents of five wonderful grandchildren. Becoming grandparents has been one of the greatest joys of our lives. This season of life has given us the opportunity to slow down and truly savor the wonder of childhood again,” continued Carreras. “We look forward to welcoming local families, schools, and community groups to experience everything the new Play Street Museum has to offer.”
Teresa and Sergio Carreras believe children learn best when they’re having fun and can touch, build, pretend, and explore. Every exhibit at Play Street Museum Ontario is designed to spark curiosity, creativity and confidence. Whether children are running a pretend grocery store, experimenting with simple science, creating art, or climbing into imaginative worlds, children are learning skills that will stay with them for a lifetime. “This space is not just for kids. It’s for grandparents who cherish story time in a cozy corner. For parents who light up watching their child try something new. For caregivers who treasure the laughter and togetherness of play,” shared Carreras.
Play Street Museum offers an expansive, rotating curriculum at each location specifically designed for children under nine years of age. Everyday and every week is different at Play Street Museum, providing motivation and justification
for a scheduled time in families’ busy calendars. Play Street Museum Ontario also offers one-of-a-kind birthday parties, complete with comprehensive themes and options for parents from “Do-It-Yourself” to “Sit Back & Relax”, in addition to special events and activities during evenings and weekends.
In Scientific American’s article, “The Need for Pretend Play in Child Development”, Yale professor Dr. Scott Barry Kaufman summarized the last 75 years of research by declaring imaginative play as a “vital component to the normal development of a child.” By narrowing the focus of Play Street Museum and its indoor play areas to the interests and imaginations of children eight and under, young explorers discover educational exhibits and activities in a world specifically crafted just for them. The deliberate and manageable scale enables children to self-navigate throughout the children’s museum and indoor play area to engage deeply in activities about which they are most interested and passionate. This freedom reinforces independence in the child and also has the benefit of creating a more relaxed and accommodating museum experience for the caregiver.
“Play Street Museum is thrilled to welcome and open the Ontario location soon with our incredible partners, Teresa and Sergio Carreras. As parents and grandparents, they understand the powerful impact of play and intentionally sought to bring its benefits to this part of the Ontario area. They’ve taken their passion for children, education, and play and applied it to building a dynamic, local business that will support the health and well-being of their own community,” commented Play Street Museum Founder and CEO, Courtney Muccio.
Located at 910 North Haven Avenue, Suite 150, the new Ontario location makes the extensive, and well researched benefits of play easily accessible to the local community. The museum’s team of highly knowledgeable associates can provide guidance on additional opportunities to expand the play and learning, either on site or at home, from corresponding activity kits, to pottery, to slime kits, to sensory kits. Customers can also book their play time in advance in addition to schedule birthday parties or private events.
Families and customers can visit
https://www.ontario.playstreetmuseum.com/ to book playtime, birthday parties, field trips, and to check out special events.
Business
Sweet Success: The Inland Empire Regional Chamber of Commerce Teams with The Freaky Cookie to Elevate Local WBENC-Certified Business
How The Freaky Cookie Grew with Chamber Support: A WBENC Success Story in the Inland Empire
At the Inland Empire Regional Chamber of Commerce (IERCC), we pride ourselves on championing business growth and recognizing the powerful stories of our members. One standout example is Sheila Cavalier, founder of The Freaky Cookie—a fun and rebellious cookie catering company she launched in 2018 alongside her son, Marcus.

What began as a direct-to-consumer venture has grown into a business-to-business powerhouse, fueled by innovation, strategy, and strong community ties. The Freaky Cookie specializes in custom-labeled, individually wrapped cookies for corporate gifts, bulk orders, and special events. Their nostalgic family recipe, dating back over 90 years, delivers both flavor and flair. As Cavalier puts it, “There’s never not a need for a large amount of cookies.”
Recognizing a unique market opportunity during the pandemic, Sheila pivoted the business model to focus on custom-branded cookies—meeting the surge in demand for individually packaged baked goods that also serve as creative marketing tools. “Corporations were tired of traditional marketing,” she recalls. “Our custom-labeled cookies became a fun, fresh alternative.”
In 2022, Sheila connected with IERCC President Edward Ornelas Jr. during the Multi-Chamber Mixer at Ontario International Airport. That meeting led to The Freaky Cookie joining IERCC, which soon opened doors to strategic partnerships and increased visibility. Through the chamber’s vast network and advocacy, Sheila has built relationships with organizations such as Bank of America, Fifth Third Bank, Top Golf, and Southwest Airlines, which featured The Freaky Cookie in their 50th Anniversary celebration at ONT.
“The IERCC has been a warm and welcoming space,” Cavalier said. “Having the chamber validate our business really means something. It’s helped us get our foot in the door with so many great companies.”
The impact has been tangible. With increased revenue and expanded operations, The Freaky Cookie is no longer just a clever name—it’s a growing force in regional commerce. As Sheila puts it, her goal now is simple but powerful: “Deliver smiles.”
Business
Fire Helmet Manufacturer Helps Disabled Community find Employment
Riverside’s Phenix Technology Leads with Inclusion, Empowering the Disabled Community Through Workforce Training and Employer Education
Written by Logan Rosselli, IEBJ Content Contributor
In the heart of Riverside, off of Chicago Avenue, a small, but mighty team has been quietly manufacturing life-saving equipment for firefighters across the world for over 50 years. Phenix Technology Inc. is an internationally recognized fire helmet manufacturer who builds their products from start to finish right here in the Inland Empire. For their great products, they’ve received numerous awards such as the Greater Riverside Chamber of Commerce’s 2025 Innovator of the Year, a 2016 “E” for Exports award from the U.S. Department of Commerce, a finalist position in the “Coolest Thing Made in California” competition and more. However, their most recent accolade doesn’t involve their products at all.
In 2024, Phenix founded the ground breaking “Opportunity for All” program to provide disabled community members with the opportunity to access career education, hands-on experience and employment opportunities through an 11 week training cohort. In this program, neurodivergent individuals wanting to find stable employment learn about standard hiring practices, writing a resume, effective interviewing and professional attire while getting on-the-job training with a partnered employer in the community. It has helped dozens of disabled community members to find a new sense of independence and achieve their full potential while helping local employers find dependable employees who bring a unique perspective to the workplace.
It’s for this program that the National Association of Workforce Development Boards (NAWB), a representative of over 570 workforce development boards across the United States, honored Phenix with the prestigious W.O. Lawton Business Leadership Award in late March.
“While we take tremendous pride in the products we make, we also believe we have a mission to create a better world through developing opportunities,” said Angel Sanchez, CEO of Phenix Technology in a statement released in early April. “Opportunity for All has helped prove that individuals who have historically been excluded from the workforce don’t just contribute — they elevate organizations. We are honored to receive this national award and grateful to the partners who have helped us make this vision a reality.”

CEO Angel Sanchez Jr. accepts the NAWB Award
Though “Opportunity for All” is certainly the cornerstone program for the company, Phenix’s leadership team was not satisfied to leave their mission there. Thus, in 2024, the company founded its nonprofit arm, Phenix Gateway to offer more programs and advocacy to the community. Through Phenix Gateway, the company offers workforce development workshops for individuals who don’t need the full scale of the “Opportunity for All” program, but want to improve a specific skill like resume writing or workplace social skills.
However, Phenix knows that preparing disabled people for the workforce is only one end of the equation; the workforce also has to be prepared to accept the unique skills, perspectives and challenges of the disabled community. For this reason, Phenix Gateway offers employer training workshops as well as educational materials available to businesses and the community. Training programs cover a lot of ground, ranging from assistance with optimizing interviews for people with neurodevelopmental disorders to creating sensory-friendly environments in the workplace.
In Riverside, these programs have had a huge impact on the local community. As of March 2025, Phenix’s Opportunity for All program has had over two dozen participants and 44% found stable employment through or after the program. Their one-off workforce development workshops have seen over 200 participants learn new skills and help them find employment and the nonprofit currently partners with close to 90 businesses to assist them in their endeavor to create a more inclusive workforce.

Phenix Gateway staff helps a program participant with his skills
For businesses or community members interested in learning how they can support or participate in these programs, Phenix encourages them to reach out by email to info@phenixgateway.org and to attend their First Annual Gala: Rising Together, A Phenix Gateway Celebration, on Thursday, May 15th. Tickets for this event are available at phenixgateway.org.
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