Ten members of the Senate, led by Senators Jacky Rosen (D-NV) and Ron Wyden (D-OR), and 34 members of the House, led by Representatives Earl Blumenauer (D-OR) and Tom McClintock (R-CA), have recently issued letters requesting Small Business Administration funding programs be expanded so that they may be accessed by state-licensed cannabis businesses.
“With the majority of regulated states designating medical cannabis facilities as ‘essential’ to the health and welfare of the community during this time of crisis, it is critical that Congress authorizes the Small Business Association to similarly recognize their importance and to allow the agency to provide these small businesses with economic assistance to ensure public health, patient access, and continuity of care,” said NORML Political Director Justin Strekal. “Many of these establishments are small-to-medium size operators, with their employees keeping their doors open without access to the support systems in place for other businesses, thus depriving them of potentially lifesaving protections.”
Members of the Senate wrote:
“Given the nature of the global COVID-19 pandemic, we must ensure that every American small business has the capacity to protect the health and economic wellbeing of their community and workforce. Therefore, we ask Senate Leadership to include in any future relief package provisions to allow state-legal cannabis small businesses and the small businesses who work with this industry to access the critical SBA support they need during these challenging and unprecedented times.”
You can find the full Senate letter here.
Members of the House wrote:
“The COVID-19 outbreak is no time to permit federal policy to stand in the way of the reality that millions of Americans in states across the country face daily—that state-legal cannabis businesses are sources of economic growth and financial stability for thousands of workers and families, and need our support. Given the nature of the epidemic, we must ensure that everyone has the capacity to carry out the recommended public health and worker-focused measures. Without doing that, we risk undercutting the public health efforts nationwide.”
You can find the full House letter here.
The state-licensed cannabis industry employs more than 240,000 American workers, over four times the number of American workers as does the coal industry. The majority of these businesses are small-to-medium in size.
In the majority of jurisdictions that regulate cannabis marketplaces, lawmakers in recent weeks have designated these operations to be ‘essential’ to the health and well-being of the patient community. In others, regulators have either relaxed protocols or moved forward with new, emergency rules to facilitate expanded access – such as permitting patients to seek telemedicine appointments and allowing dispensaries to permit curbside pick-up and home delivery.
A representative from the Small Business Administration previously acknowledged, “With the exception of businesses that produce or sell hemp and hemp-derived products (Agriculture Improvement Act of 2018, Public Law 115-334), marijuana-related businesses are not eligible for SBA-funded services.”
NORML has consistently been working with its Congressional allies to move forward several pieces of legislation, such as HR 3540: The Ensuring Safe Capital Access for All Small Businesses Act, and HR 3884/S 2227: The Marijuana Opportunity, Reinvestment, and Expungement Act – which “prohibit the Small Business Administration from declining to provide certain small business loans to an eligible entity solely because it is a cannabis-related legitimate business or service provider.”