Eight U.S. Senators have urged committee leadership to allow state-legal marijuana businesses to access federal Small Business Administration programs and services.
Sen. Jacky Rose (D-NV), led a group of senators to write a letter asking the chairman and ranking member on the Senate Appropriations Subcommittee on Financial Services and General Government. They asked that future spending legislation include language that allows cannabis businesses access to SBA.
The letter asks specifically that appropriators prohibit SBA from refusing applications for four loan programmes for “legally operated cannabis small businesses” in states which have legalized the sale and use of cannabis.
The lawmakers also requested that the committee leaders include bill language that prohibits SBA from excluding state-legal cannabis business from participating in SBA’s Entrepreneurial Development Programs or from benefiting from them.
Rosen wrote a similar letter last year . However, the requested language wasn’t adopted in the final FSGG appropriations package of Fiscal Year 2023. The senators hope for a better result in FY 2024.
The letter was sent late in March, and was highlighted last week in a release by Rosen’s office. It was also signed Sens. Ron Wyden, Tammy Duckworth, Ed Markey, John Hickenlooper and Jeff Merkley are all Democrats.
The senators stated that “most banks are unwilling to serve state-legal cannabis business due to conflict with federal law.” This means that legally operating small businesses are often forced to use only cash to conduct their operations, which could jeopardize public safety.
“SBA loan programs would be especially helpful to cannabis small businesses because they would fill gaps left by the private sector and could expand the availability of capital for many entrepreneurs–including for our minority, women, and veteran business owners. SBA’s programs for entrepreneurship development provide training, technical assistance, and counseling to small businesses in all parts of the country. These are resources that entrepreneurs in the state-legal cannabis sector desperately need.
The letter states: “Access to SBA loans and entrepreneurship programs will support a rapidly-growing industry that creates employment, supports small business, and increases revenues in the states that have legalized cannabis.”
Rosen stated in a press statement that “small businesses are the backbone of Nevada’s economy and power our communities.”
She stated. We must take action to ensure that these small business are supported to be successful.
The cannabis letter shows how Congress is working to normalize the financial services available for an industry that relies heavily on cash. The senators noted that marijuana companies are largely barred from simple banking services, let alone federally-backed loans, under prohibition.
The Senate Banking Committee has scheduled a hearing on Thursday, where the members will discuss the newly re-filed Secure and Fair Enforcement Banking Act.
Senate Majority leader Chuck Schumer (DNY) stated during a marijuana rally in New York City that, once the legislation passes out of the committee, he would bring it to floor and attach provisions for social equity, including expungements.
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It was reported last year that Schumer’s SAFE Plus package, which included marijuana reform legislation, would include SBA-specific provisions. This didn’t happen.
Both sides of the aisle are pushing for action this session on the stand-alone measure.
The SAFE Banking Act protects banks who work with state-legal marijuana businesses from being penalized. The amendments to the latest version have been a source of encouragement for advocates . However, as Schumer explained the plan is to revise the bill on the floor in order to include additional equity provisions.
This bill is seen as one of the most likely to pass this session, with Republicans controlling the House. Former top aide of Senate Majority leader Chuck Schumer (D-NY), recently wrote an opinion piece for Marijuana Moment explaining the new political dynamics that could boost the bill’s chances of passing this year.
Schumer has stated his commitment to moving forward with the marijuana banking bill, which includes criminal justice provisions. He called the effort to repair the harms caused by the drug war as a “moral obligation” for Congress .
The current makeup of Congress has led to some doubts about the feasibility of any cannabis reform. Senate Republicans have blocked a motion to move forward a bipartisan measure that would require studies on the medical potential for cannabis to help veterans suffering from chronic pain or PTSD.
In recent years, the SAFE Banking Act was approved in a largely bipartisan manner in the House. It’s been stuck in the Senate for years, under both Democratic leadership and Republican leadership.
In the first months of the new Congress, Schumer has met with Democratic members and Republican members to discuss marijuana reform proposals which might be able to garner bipartisan support this year.
Booker acknowledged that the failure to pass a banking solution for the cannabis industry would “literally” mean that hundreds of businesses will go out of business.
Rep. Earl Blumenauer, D-OR, who is sponsoring a House version of SAFE Banking Act said that he believes it’s crucial that advocates and legislators align on any incremental proposal to end the war on drugs, warning that an “all or nothing” mentality.
In recent weeks, Congress has received numerous cannabis bills in addition to the banking legislation.
Bipartisan members of Congress, for example, have introduced a bill that would mandate the automatic sealing criminal records in certain cases where federal marijuana convictions were not violent.
Last month, House and Senate legislators reintroduced a bill to give a safe harbor for insurance companies who work with licensed marijuana business.
Rep. Brian Mast, R-FL, introduced legislation last week to protect Second Amendment rights for people who use marijuana legally in states. This would allow them to buy and possess firearms they are currently prohibited to have under federal law.
Reps. Dave Joyce, R-OH and Alexandria Ocasio Cortez, D-NY have introduced a bill that would provide federal grants to encourage state and local marijuana expulsions.
Last month, Joyce, along with House Minority Leader Hakeem Jeffreys (D-NY), filed a bill to help prepare the federal government to legalize marijuana. The measure directed the Attorney General to create a commission that would study cannabis and make recommendations on how to regulate it in a similar way to alcohol.
Border Patrol agents–and their family members–are warned to just’say no to CBD’ due concerns about unregulated products
Photo by WeedPornDaily.
The article Senators push for marijuana industry access to federal small business loans and services first appeared on Marijuana Moment.
