Could bills in Congress ease small cannabis businesses' banking trouble?

Could bills in Congress ease small cannabis businesses' banking trouble?

WASHINGTON, D.C. — New regulations from Congress could follow from a committee meeting this week on cannabis in small businesses across America.

According to reporting from The Hill, the Wednesday meeting of the House Committee on Small Business held a discussion specifically for how the Congress should view businesses that deal in cannabis products like recreational marijuana, hemp and CBD.

One of the prime goals was to gather information for possible law changes that would make it easier for cannabis businesses to access funds and loans from the Small Business Administration. [1]

The Small Business Administration loans aren’t the only things moving at Congress that affect cannabis producers, processors and retailers. Lawmakers also moved forward the SAFE Banking Act through the House Financial Services committee, The Hill reports, which would guarantee cannabis businesses can use normal banking services without fear of reprisal. [1]

This comes after comments from Federal Reserve Board Member Michelle Bowman earlier this month reaffirmed that industrial hemp is a legal substance at the federal level after the 2018 Farm Bill, and that banks should not deny farmers and business owners normal access to loans and banking services. [2]

The Hill reported that one of the witnesses called to testify to the Financial Services Committee, Dana Chaves, said her cannabis business faced roadblocks to federal loans and other banking even though both federal and state laws in her area allowed her to run her business. [1]

"I hope this Committee will develop and pass legislation that expands access to business loans and lending programs under the jurisdiction of SBA for cannabis-related business, many of which are led by aspiring entrepreneurs or are minority or women-owned," Chaves testified Wednesday. [1]

Some lawmakers pushed back on the appeals to ease rules surrounding cannabis businesses, particularly those that deal in marijuana which has psychoactive effects not found in other cannabis products like CBD because of its high THC content.

Unlike marijuana, CBD and hemp products often only contain trace amounts of THC if any, and so they offer many of the cannabis plant’s wellness benefits without making users high. The committee, however, was concerned with all cannabis businesses.

Eric Goepel, CEO of the Veterans Cannabis Coalition, testified that the benefits of cannabis were particularly important for those who have served overseas.

“Untreated chronic pain is an underlying contributor to suicide rates amongst veterans,” he testified. “The relief that cannabis brings to veterans is exponential.”

As businesses continue to spring up led by gutsy entrepreneurs looking to improve people’s lives with cannabis, the laws will follow the overwhelming tide. CBD is everywhere, and all signs indicate cannabis is here to stay. How soon legislators catch up is another question.

Luckily, there are options for those who want to get into the CBD business without charting their own confusing course through the red tape.

Becoming a licensee of Nothing But Hemp is one such option, where locations and managers are assured access to education about the finest CBD products for customers, training on brands and CBD science, plus banking for your business. Learn more with the link below. [3]