The latest $2.2 trillion coronavirus relief package by the U.S. House Democrats was announced this week and a key provision of the package is the Secure and Fair Enforcement Banking (SAFE) Act.
The SAFE banking act is a step forward for the marijuana industry. NORML says that the main provisions of the proposed law would help marijuana businesses gain access to banking services.
According to NORML Political Director Justin Strekal, the proposal has already passed the House twice previously and called its inclusion a “positive development.”
“Small cannabis businesses in particular are facing tough economic times, and access to traditional financial tools will help ensure that they can weather this pandemic,” Strekal said.
The legislation however has not been taken up by the full Senate.
If passed, the SAFE Act would permit financial institutions to lend to cannabis companies that are operating legally within the state laws of their relevant jurisdictions.
The Act was originally proposed by Colorado Rep. Ed Perlmutter (D-Arvada). The House passed the SAFE Act last year with the support of all but one Democrat and a slim minority of Republicans.
