While federal coronavirus relief is helping many small businesses, marijuana dispensaries are feeling on the outside.

A group of marijuana trade organizations and credit unions are now calling on Congress to provide relief to cannabis businesses as well.

The American Trade Association for Cannabis and Hemp (ATACH), Policy Center for Public Health and Safety and 28 partnering groups and financial institutions wrote a letter to congressional leaders this week.

The letter noted that the marijuana industry and ancillary businesses that work with state-legal cannabis markets are specifically excluded from loans and lending programs provided for under several packages of COVID-19 legislation that have been approved.

The coalition has made two recommendations: 1) issue pandemic relief block grants for states to decide on their own how to allocate the funds or 2) amend current federal coronavirus aid eligibility requirements to allow cannabis businesses to get funds that are available to other companies.

“The decision to bar the legal cannabis industry from these relief programs not only harms the longevity of the industry but also the hardworking Americans who rely on the industry for their livelihood,” the letter read. “Cannabis companies are good corporate citizens and readily participate in pandemic-related measures to care for their workforce such as mandatory paid sick leave and working to care for those with the virus.”

The letter adds that “these companies do not have any of the emergency federal protections currently being offered. Further highlighting the inequity in the federal response, cannabis operators also face burdensome tax provisions due to federal law and are denied the opportunity to deduct ordinary, day-to-day business expenses, and lack access to financial services.”

“As a broad-based coalition that represents organizations founded to promote the expansion, protection, and preservation of businesses engaged in the legal trade of industrial, medical, and adult use cannabis products, we stand behind you in support,” the letter continues. “We also have financial institutions on standby ready to immediately assist with the implementation of this aid in a safe and sound manner.”

The letter was co-signed by the Washington CannaBusiness Association, New Jersey Cannabis Industry Association, Pennsylvania Cannabis Coalition, New York Medical Cannabis Industry Association, Partner Colorado Credit Union, Guardians Credit Union, Salal Credit Union, GFA Federal Credit Union and other state-based marijuana trade associations.

“The industry is a job creator, and enjoys bipartisan public support, but without federal funding eligibility to help offset emergency costs related to COVID on top of already extensive state and federal taxes, many cannabis employers and ancillary companies will have no option but to cut jobs or cease to operate,” ATACH President Michael Bronstein stated.


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