Credit Unions Join the Call for Cannabis Industry Coronavirus Assistance

The cannabis industry has become too intertwined within our society and economy to continue this second-class treatment of lacking access to banking and other services that are available to other business sectors, even those not deemed as “essential” to our local economies. Essential cannabis workers are risking their lives like grocery clerks and other crucial employees keeping some semblance of our economy going and it’s past time that they start getting treated with some type of fairness. Of course, cannabis trade groups have been clamoring for some equality, but now, credit unions are joining the fray, in another step forward for the burgeoning industry.

Marijuana Moment reported:

In a letter to congressional leaders on Tuesday, the American Trade Association for Cannabis and Hemp (ATACH), Policy Center for Public Health and Safety and 28 partnering groups and financial institutions noted that the marijuana industry and ancillary businesses that work with state-legal cannabis markets are specifically excluded from loans and lending programs provided for under several packages of COVID-19 legislation that have been approved.

To that end, the coalition made two recommendations: 1) issue pandemic relief block grants for states to decide on their own how to allocate the funds or 2) amend current federal coronavirus aid eligibility requirements to allow cannabis businesses to get funds that are available to other companies.

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“The decision to bar the legal cannabis industry from these relief programs not only harms the longevity of the industry but also the hardworking Americans who rely on the industry for their livelihood,” the groups wrote to congressional leaders. “Cannabis companies are good corporate citizens and readily participate in pandemic-related measures to care for their workforce such as mandatory paid sick leave and working to care for those with the virus.”

This latest push falls on the heels of a bill proposed by Oregon’s Earl Blumenauer and Colorado’s Earl Perlmutter to make cannabis industry participants eligible for relief during the coronavirus pandemic crisis. From the April 23rd press release issued by the representatives:

Reps. Blumenauer and Perlmutter Introduce Legislation to Make Cannabis Businesses Eligible for COVID-19 Relief

Washington D.C. – Today, Reps. Earl Blumenauer (OR-03) and Ed Perlmutter (CO-07) introduced legislation that would make cannabis businesses eligible for Small Businesses Administration (SBA) COVID-19 relief programs.

Currently, state-legal cannabis businesses are being left out of relief that was established to help small businesses weather the COVID-19 pandemic. Most notably, they are unable to access and participation in SBA’s loan programs—financial support that is designed to pay workers, health care benefits, and family or sick leave. This legislation would grant state-legal cannabis businesses eligibility for the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and Economic Injury Disaster Loans emergency advances.

“As Congress seeks to provide relief to small businesses across America, chief among those being left out are state-legal cannabis businesses that are essential to communities and have met the demands of this crisis,” said Rep. Blumenauer, founder and co-chair of the Congressional Cannabis Caucus. “We should include state-legal cannabis in federal COVID-19 response efforts.  Without providing these businesses the relief needed to carry out the recommended public health and worker-focused measures, we are putting these hard-working people – and ourselves – at risk.”

“Cannabis businesses are major employers and significant contributors to local economies in Colorado and across the country,” said Rep. Perlmutter (CO-07). “They should receive the same level of support as other legal, legitimate businesses and be eligible for SBA relief funds during this COVID-19 crisis.”

 Blumenauer also led a bipartisan coalition of nearly three dozen Congressmembers in calling on House leadership to ensure cannabis businesses are included in future relief efforts.

To read the full text of the bill, click here.

Virtually every industry is hurting, and even though cannabis businesses remain open in legal states during this crisis, they are impacted by required safety precautions, massive unemployment, and supply chain disruptions, like any other business sector. The difference is that cannabis companies often don’t have access to bank accounts, loans, grants, insurance, and other services available to businesses, all they while, being taxed at an exorbitant rate because of the 280e tax provision. It’s time that Congress, and our society give our essential workers the protections and tools they need to navigate this frightening phase, and the cannabis industry should be no different.

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