On Thursday, six cannabis industry groups wrote a letter to state treasures and governors asking for the creation of a state-based lending or loan guarantee program. The letter argues that this necessary to fill the gap that cannabis businesses are left in without access to the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loans (“EIDLs”).
The PPP and EIDLs were created under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, however, the SBA has stated that cannabis businesses are not eligible for SBA-funded services except for hemp and hemp-related products exempted under the Agriculture Improvement Act of 2018.
More information on the letter can be found here.
Raffi Garnighian is a published author and Colorado and New York licensed attorney at Wysocki Law Group, P.C. Kieran Edstrom is a third-year law student at the University of Denver Sturm College of Law and a law clerk for Wysocki Law Group, P.C.
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