It’s fitting that, on 4/20, the House of Representatives passed legislation designed to allow cannabis companies access to banking; it’s about time. Continue reading “SAFE Banking Act Passes House – Again”
The news has been non-stop for months now, and that ever-rushing stream of coronavirus updates include big news for cannabis companies.
Weeks ago, Congress passed the CARES Act, just one part of what looks to be a series of stimulus bills designed to save and, when the time is right, jumpstart the economy in the hopes of avoiding a long-term recession. Those financial fears are well-founded, with industries from hospitality to manufacturing facing months of uncertainty.
Cannabis growers, however, received none of that financial support. With marijuana classed as a Schedule-I drug, the industry is essentially barred from receiving federal money, no matter how much that support might be necessary in an environment that has seen 36.6 million people lose their jobs since early March. It’s an ironic situation. Just as many states have deemed cannabis growers and retailers as essential businesses, those same companies aren’t allowed to receive loans.
The next round of stimulus, however, might just have some good news tucked into the folds. Last fall, the House of Representatives passed the SAFE Banking Act by a comfortable vote, only to see the bill tossed onto a heap of measures awaiting the elusive attention of an unproductive Senate. In the process of drafting the next stimulus package, however, the House has revived much of the language from the SAFE Banking Act and put it into the next round of legislation, which is rumored to be around 1,800 pages long.
In the majority of states across the country, cannabis companies face the same challenges as every other small business but without the necessary federal support during these trying times. Most experts believe it may be a long shot to expect the cannabis-related language to survive cuts on the Senate floor, but the persistence of the House and the acknowledgment of just how important the industry is for the overall economy going forward is a good sign.
Cannabis is here to stay, and having fair, reliable access to financial services is going to be a piece of the puzzle that completes the picture.
How has your cannabis company fared during the pandemic? Let us know; we’re here to help!