April 14, 2020 11:49 am ETEstimated Read Time: 4 Minutes
The Pandemic hit the economy hard. COVID-19 is not impacting every American equally, but it definitely has not skipped over America’s hemp farmers and businesses, many of which are essential to the American food and health systems. Legislation, formally known as the “Coronavirus Aid, Relief, and Economic Security Act” (or the CARES Act) – was approved by the Senate 96-0 following days of negotiations. The CARES Act is a sweeping third-wave relief package in response to the COVID-19 pandemic and became law March 27, 2020. One of the most highly anticipated provisions of the CARES Act is the “recovery rebates” for individuals which will provide a one-time cash payment up to $1,200 per qualifying individual ($2,400 in the case of eligible individuals filing a joint return) plus an additional $500 for qualifying children.
Federal Relief Is On The Way
Under the CARES Act, small businesses can receive loans to cover payroll expenses, health care benefits, employee salaries, rent, utilities and interest on mortgage debt. Some hemp businesses will qualify for the CARES Act’s new Paycheck Protection Program (PPP). The PPP will provide up to $350 billion in cash-flow assistance to employers that maintain their payroll during the COVID-19 crisis. PPP loans are federally guaranteed, and the portion of the loan used for covered payroll costs is fully forgiven after eight weeks.
In order to be eligible under the CARES Act, hemp businesses must be in compliance with their codified state and federal rules. To qualify for these small business loans, businesses must employ 500 employees or less, including all full-time and part-time employees. Nearly all U.S. hemp businesses fall into this category. Eligible recipients must also submit additional documentation as part of their loan application. The CARES Act delegates authority to depository institutions, insured credit unions, institutions of the Farm Credit System and other lenders to provide loans under this program.
Apply For Your Medical Marijuana Card Today
Veriheal has satisfied hundreds of thousands of patients nationwide
Get approved or your money back
Appointments available on-demand
Customer support available 24/7
Are Hemp Farmers Left Out?
Farmers who say they’re not getting needed assistance from federal coronavirus relief are looking to Congress to change the oversight keeping them from accessing help from the Small Business Administration. Hemp farmers and farming businesses with federally backed mortgage loans secured by USDA may request forbearance for up to 180 days, during which no fees, penalties, or interest will accrue. It’s not unusual that the SBA excluded farms from the coronavirus relief emergency loan package, as farmers are typically included in – and expected to apply for – any available U.S. Department of Agriculture disaster funding.
In the case of the coronavirus, there appears to be no disaster declaration by the secretary of agriculture or other agriculture-specific disaster funding authorized by the CARES Act, so Congress is working to clarify to SBA its apparent intent that farms should be included in the EIDL offered through SBA in this case.
Cannabis Businesses Are Not Eligible
In light of the COVID-19 outbreak, the SBA revised its “Disaster Loan” process to provide low-interest “Disaster Loans” to eligible small businesses. Consequently, because of the continued Schedule I status of cannabis under federal law, cannabis businesses will not be entitled to receive Disaster Loans from the SBA, regardless of whether they qualify as a struggling small business. The problem, however, is that the SBA still refuses to assist state-legal cannabis businesses in equal need of small business loans.
Specifically, in a 2018 Policy Notice, the SBA reaffirmed that cannabis businesses – and even some adjacent firms who service the cannabis industry but don’t touch the plant – cannot receive aid in the form of federally backed loans. Moreover, the conflict between state and federal law continues to prevent cannabis business from receiving assistance from the U.S. Small Business Administration (SBA) under the Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R. 6201).
Natasha has worked as a journalist in the cannabis scene for several years. She travels regularly in her tiny house school bus conversion to keep up to date with the ever-changing industry. Her experience is varied and eclectic.
If you’re reading this, you are either a recreational cannabis veteran who has seen a handful of cannabis smokers passing out from puffing a joint and can’t seem to figure out why. Or, you are a newbie who wants to give recreational or medical cannabis a shot, and the burning question on your mind is,…
Edibles are arguably one of the best means of recreational cannabis consumption—you get to eat a treat AND experience a long-lasting high. But it’s easy to end up dealing with some unwanted side effects due to the variability in the onset of these THC-packed goodies, which come in the form of brownies, cookies, gummies, chocolate,…
So you love smoking cannabis, but you’re tired of the same ole rolling papers. Perhaps you feel like you’ve graduated from dumping out the tobacco and shoving weed into an empty cigarette. Maybe you’ve recently learned about the potential dangers and risks associated with tobacco blunt wraps and want a healthier option. Let’s explore some…
When you decide that you are going to dabble in cannabis cultivation, you have many different decisions to make. You’ll have to decide whether you’re growing indoors or outdoors, as well as in soil, or the route of hydroponics. You’ll also have to pick what type of planters to use, what grow medium to use,…
Professional wrestling legend Terry Gene Bollea, also known as Hulk Hogan, recently mentioned how CBD has helped him deal with addiction. In an interview with Muscle & Health magazine, he revealed that he has swapped opioids and alcohol for CBD. Worthy of note is that the therapeutic value of CBD is being studied for substance…
We use our own as well as third party cookies to improve your site experience and the services we make available. You can learn more about our use of cookies in our Privacy Policy.
Content Disclamer
The statements made regarding cannabis products on this website have not been evaluated by the Food and Drug Administration (FDA). Cannabis is not an FDA-approved substance and is still illegal under federal law. The information provided on this website is intended for educational purposes only and is not intended to diagnose, treat, cure, or prevent any disease. It is not intended as medical advice and should not be considered as a substitute for advice from a healthcare professional. We strongly recommend that you consult with a physician or other qualified healthcare provider before using any cannabis products. The use of any information provided on this website is solely at your own risk.