House Democrats are pushing for small business aid for marijuana businesses.
WASHINGTON — In another effort to reform the national marijuana law, House Democrats in the United States Congress have reintroduced the Ensuring Safe Capital Access for All Small Businesses Act of 2021 to open up various Small Business Administration programs for small firms operating in the legal cannabis sector.
This proposal could also cover businesses that produce marijuana businesses that include THC-containing vapor products.
“The legal cannabis sector has a high proportion of small firms. With more and more states pursuing legalization, including my home state of New York, there are a growing number of legitimate small businesses that are excluded from critical SBA programs,” said Rep. Nydia Velázquez, D-New York.
Velázquez is the chair of the House Small Business Committee. Rep. Dwight Evans, D-Pennsylvania, and Rep. Jared Golden, D-Maine, also joined the legislation.
“This legislation will spark growth by extending affordable capital to small firms in the cannabis space. Simultaneously, the bill acknowledges the structural disadvantages facing entrepreneurs of color and seeks to level the playing field.”
“The bill would give small firms in the cannabis industry access to the 7(a) loan guaranty program, disaster assistance, the Microloan Program, the Small Business Investment Company program, and the 504 loan program,” notes the House Small Business Committee staff. “The bill also intends to increase equity in the cannabis sector by ensuring diverse businesses have access to affordable capital and are better able to finance the start-up, operation, and eventual expansion of their small business.
“[Participants] in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products,” notes legislation provided by the House of Representatives to Vaping Post.
Upon consultation of similar bills and case law, this definition would also cover marijuana-based businesses that produce, market, and distribute THC-containing vapor products.