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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.

© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

Updated: Apr 10

Today, Wells Fargo has announced that it is no longer accepting applications for the Paycheck Protection Program ("PPP"), as described under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Any requests for loans submitted after April 5 will not be considered, according to the bank. The application period under the PPP program's guidelines is intended to run until June, 2020.


As of the date of this article, Wells Fargo has indicated that it had received applications that total more than $10 billion, the maximum the bank planned to offer under the program. This limitation is partly due to the Federal Reserve's cap imposed in 2018 due to discoveries of consumer abuses caused by Wells Fargo. The bank has currently petitioned the Federal Reserve to temporarily lift this cap, however no such change has been made nor is expected.


Budletter will continue to monitor the situation and provide updates as they arise.



© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

Updated: Apr 6

In response to the continuing spread of COVID-19, also known as Coronavirus, on March 27th the United States Congress passed the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Under the Act, the Small Business Association ("SBA") is offering an advance of up to $10,000 to small businesses applying for an SBA Economic Injury Disaster Loan ("EIDL"). To access an Emergency Economic Injury Grant ("EEIG"), businesses must first apply for an EIDL, then request the EEIG as an advance. The EEIG may be approved within three days of applying for an EIDL and does not need to be repaid under any circumstances.


To be eligible for an EDIL and subsequently an EEIG:


  • the business must be a small business with 500 or less employees, or if not, a qualifying "small business" under SBA standards found here;

  • the business must be able to make certain disclosures about its and its members'/operators' business activities and their criminal records, if any; and

  • the business must have been in operation since January 31, 2020 and must have operating expenses dating prior to January 31, 2020.


The SBA has stated that while hemp and hemp-derived product businesses are eligible for assistance, marijuana-related businesses are not. If you believe you qualify for an EIDL and EEIG, it is recommended that you apply for assistance. Applications can be found here. More information can be found here. Businesses can apply for EIDLs and EEIGs through December 31, 2020.


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.

© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

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