A group of senators from the Democratic Party is urging a significant committee to ensure small cannabis entities have equitable access to federal Small Business Administration (SBA) lending programs and development resources available to other industries.
In an April letter to the leaders of the Appropriations subcommittee, the senators urged that the FY 2025 FSGG spending measure include provisions to stop the SBA from rejecting loan applications from small cannabis entities operating legally in states that have approved marijuana use and sales.
Senator Jacky Rosen led the letter, asking the subcommittee leaders to add clauses to the spending bill that would prevent the SBA from excluding state-legal marijuana businesses from its entrepreneurial development initiatives. Other senators who signed the letter alongside Rosen include Cory Booker, Jeff Merkley, Ron Wyden, Tammy Duckworth, Martin Heinrich, John Hickenlooper, Ed Markey, Michael Bennett and Alex Padilla.
The senators highlighted the change in public attitude toward cannabis reform, pointing out that markets which bring in billions of dollars in tax revenue had resulted from the legalization of cannabis in the majority of states. The senators also noted that most banks are hesitant to work with legal marijuana entities because of federal law conflicts, compelling these businesses to operate mainly with cash. This situation poses public safety risks. The lawmakers argued that SBA loan initiatives could bridge the gap left by private-sector reluctance, providing vital capital for entrepreneurs, including women, minorities and veterans.
This marks at least the third instance where Rosen has led a similar request to the Appropriations subcommittee, but the proposed language has not yet been included in any spending measure.
Senate leadership has been discussing a bipartisan measure to safeguard financial institutions working with legal marijuana entities. However, the progress of this bill remains uncertain, particularly due to resistance from key Republican members such as Mitch McConnell, the Senate minority leader.
Rosen has previously expressed a desire to amend the SAFER Banking Act to allow marijuana businesses to access SBA programs. Additionally, she has advocated for the inclusion of language in a newly introduced federal cannabis legalization measure that proposes an SBA pilot initiative. The initiative would provide intermediary lending, offering direct loans to qualified intermediaries, who would then lend to startups and businesses owned by those affected by the drug war and those from economically and socially disadvantaged backgrounds.
In a news release regarding the letter and the other efforts she recently spearheaded, Rosen stressed the value of small entities to Nevada’s economy. She emphasized her resolve to slash bureaucratic obstacles to facilitate such businesses’ access to financing and assist them obtain the federal support they require for expansion and prosperity.
Industry actors such as Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) would be glad to see that legitimate marijuana companies which need SBA services can access them just as businesses in other industries can.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
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