A coalition of marijuana industry associations sent a letter to governors and state treasurers on Wednesday, asking them to help secure financial relief that cannabis businesses are being denied by the federal government amid the coronavirus outbreak.
The letter emphasizes that marijuana companies are providing jobs and essential services during the pandemic, and some are producing needed medical supplies like hand sanitizer. Despite this, the cannabis industry is specifically ineligible for federal disaster loans and other relief programs due to their product’s ongoing status as an illegal controlled substance. The groups said the treasurers could provide assistance to that end.
“Like all essential businesses, cannabis businesses are facing significant uncertainty and costs to provide for our employees and to maintain the medical supply chain during this pandemic,” the groups said. “Yet, unlike every other essential business, there is an underlying federal-state tension which puts our businesses in a uniquely vulnerable and dire operational and financial position. This is particularly true of our small and minority-owned businesses.”
They made two requests to the state officials: 1) encourage congressional delegations to insert language into future COVID-19 legislation that would enable marijuana companies to access federal Small Business Administration (SBA) relief loans and disaster assistance, and 2) consider creating state-level lending programs for the industry to help fill the gap in the meantime.
“Although cannabis businesses operate in strict compliance with state law and comply with a broad range of federal mandates, including paying federal corporate taxes at a much higher effective rate than other businesses due to a quirk in the tax code, their activity is still considered illegal under federal law,” the letter states. “This creates all kinds of hardship, including this current prohibition on SBA assistance.”
Published: April 08, 2020
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