Marijuana Businesses Could Get Federal Disaster Relief Funds Under New Congressional Bill

Marijuana businesses impacted by recent natural disasters or that have experienced financial distress due to the coronavirus pandemic would be eligible for federal relief programs under new legislation introduced in the House of Representatives and Senate on Thursday.

Because cannabis remains federally prohibited, the Small Business Administration (SBA) has explicitly denied the industry—and businesses that work indirectly with it—access to its relief programs like other markets. That means, for example, marijuana farmers in states like California and Oregon that have seen their crops destroyed by wildfires are fully dependent on state and local assistance.

The new Small Business Disaster Relief Equity Act would resolve that problem, stipulating that disaster- or COVID-related services, grants, loans and tax benefits that are made available through federal agencies or congressional legislation cannot be denied to cannabis businesses solely because of the nature of their work, as long as it is in compliance with state law.

Read More

Latest posts