Marijuana companies who make the kind of goodies that get you high have been unilaterally shut out of the loans issued to small businesses from the federal government. CBD companies, on the other hand, have been able to get millions of dollars from the Paycheck Protection Program.
VICEreported that at least three CBD vendors have received loans in April, according to Securities and Exchange Commission filings.
CV Sciences, a California based company which makes the PlusCBD brand of gummies, oils, lotions, and tinctures, received a $2.9 million loan. CBDMd, a company out of North Carolina which makes gummies, animal treats, creams, and bath bombs, among other products, got $1.5 million from the feds. Lifted Made, which sells CBD flower pre-roll joints, cape cartridges, and infused lube, received $150,000.
The SEC only reports loans received by publicly traded companies, which means that many smaller CBD vendors may have also received money from the Small Business Administration.
Though cannabis companies that sell state-legalized cannabis containing THC have been deemed essential in several states, they have not been able to receive the funding which has kept many other small businesses afloat during the COVID-19 crisis.\
This puts a heavy burden on companies providing an apparently vital public service, and could spell doom for many businesses in the cannabis industry.
A bill introduced into Congress in April could provide relief for the neglected cannabis companies by changing eligibility requirements for the Paycheck Protection Program. The Emergency Cannabis Small Business Health and Safety Act was introduced by Rep. Earl Blumenauer (D-OR) and Rep. Ed Perlmutter (D-CO).
“As Congress seeks to provide relief to small businesses across America, chief among those being left out are state-legal cannabis businesses that are essential to communities and have met the demands of this crisis,” saidRep. Blumenauer.
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