No Federal Relief for Marijuana Businesses
In response to the continued COVID-19 outbreak, national, state, and local governments have taken unprecedented measures to prevent the further spread of this virus. This includes issuing “stay-home, stay-safe” orders throughout the country. As of April 27th, Business Insider reports that 85% of Americans are currently subject to a stay-home, stay-safe order. Although these measures may help to lessen the spread of Coronavirus, they are also taking a significant toll on businesses of all shapes and sizes.
In response, Congress has passed a number of measures designed to assist businesses struggling with cash flow as the American economy grinds to a halt. This includes a variety of funding sources and loans, with $500 billion allocated to business loans, and another $350 billion available to businesses with fewer than 500 employees. Unfortunately, however, the continued gap between federal and state cannabis laws have left the marijuana industry in a tough position.
For purposes of federal law, marijuana is still a Schedule I controlled substance. As such, marijuana businesses are ineligible for the relief afforded under the recent Coronavirus relief packages. Thankfully, many states have designated marijuana facilities as “essential services,” thereby allowing patients to get the medicine they need. This also insulates marijuana facilities from some of the worst economic impacts of the COVID-19 pandemic. Nevertheless, the fact that this emerging industry of mostly small businesses has been left without relief in these trying times only serves to highlight the need for federal reform with respect to marijuana.
Federal law needs to be updated to reflect the fact that a majority of states have now legalized marijuana use in some form. This includes removing the restrictions that prevent financial institutions from associating with marijuana businesses, as well as reforms to ensure these essential businesses can obtain the financial help they need to continue to operate during this pandemic. As experienced cannabis lawyers, our team at Grewal Law PLLC is available to help marijuana business owners with compliance issues, including for Michigan’s stay-home, stay-safe order. If you need help, our team can apply decades of combined experience and in-depth knowledge of cannabis law to your case.
Contact our team at (888) 211-5798 today for a free consultation with our team.