Above The Law Article: The ineligibility of many cannabis companies for SBA loans seems particularly inequitable.

Interesting to see the mainstream legal press report on the issue, It’s not something we normally  see.

 

ATL write

In response to the devastating economic impact of the coronavirus pandemic, Congress came to the rescue of American businesses, small and large, by approving an estimated $2 trillion stimulus package, known as the Coronavirus Aid, Relief, and Economic Security Act. The CARES Act, in part, prescribes $349 billion in small business loans to help American companies stay afloat during this economic crisis.

In addition to enacting the CARES Act, President Donald Trump signed into law the Coronavirus Preparedness and Response Supplemental Appropriations Act, which contains a $20 million grant to the Small Business Administration Disaster Relief Fund to provide additional low-interest loans to companies affected by COVID-19.

Like most other American businesses, cannabis companies are struggling with major economic setbacks, yet they are denied tapping into these SBA loans on the basis of their federal legality and their ability to comply with “all applicable federal laws and regulations.”

The cannabis industry includes both hemp and marijuana businesses. Hemp became legal upon the enactment of the Agriculture Improvement Act of 2018 (better known as the 2018 Farm Bill), which expressly removed the agricultural crop from the definition of marijuana under the Controlled Substances Act (CSA). Although heavily regulated, hemp is no longer controlled in the classic sense. Marijuana, on the other hand, remains a Schedule I substance under the CSA, which means the cultivation, manufacture, distribution, and possession of the plant is illegal under federal law. Therefore, while qualified hemp businesses are entitled to the same stimulus relief as businesses in most other industries, marijuana businesses are not.

In a statement released shortly after the enactment of the CARES Act and of the Coronavirus Preparedness and Response Supplemental Appropriations Act, SBA spokesperson Carol Chastang explained:

Pure CBD Hemp Oil

• Pure CBD Tincture, derived from organic, US-harvested hemp, lab-tested for quality.

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George Scorsis website
Originally posted on Above The Law Article: The ineligibility of many cannabis companies for SBA loans seems particularly inequitable. via Cannabis Industry News