Healthcare workers are working hard to stop the spread of the COVID-19 in their respective hospitals. In the meantime, grocery stores struggle to maintain the food and other essential products supply. Recreational and medicinal Cannabis is considered an essential business and it remains open to the public during the quarantine. Despite this situation, dispensaries and other Cannabis companies are out of the $2 Trillion Stimulus Package.
Cannabis is still federally illegal as it is seen as a Schedule I controlled substance. The Cannabis industry is not included in the list of businesses eligible for this COVID-19 relief package. In addition, banks may even be prosecuted if they provide loans from the Stimulus Package to any Cannabis-related business.
The global Cannabis industry sales went up to $15 billion in 2019, as per Arcview Market Research data, most of it from the United States. There are other businesses and industries that posted annual sales lower than that however those are eligible for the Stimulus Package.
How about the CBD industry?
CBD is federally legal in 50 states. CBD and any Hemp-derived products are not considered as a Schedule I controlled substance. Because Hemp-related businesses are considered to be ancillary cannabis businesses, they are technically allowed to apply for the stimulus package loans. However, the chance of getting a loan is lower than other companies in different industries.
Many people find health benefits in Cannabis- and Hemp-derived products making a positive impact in society, especially during this uncertain time. According to recent studies, Cannabinoids may help with anxiety, stress, chronic pain, sleepness, and other health conditions. Not to mention the positive impact in the national economy while so many other industries are struggling.
Cannabis is deemed essential by many states but ineligible for federal stimulus. If the SAFE Banking Act could allow banks to do business with Cannabis-related businesses. For now, the act passed in the house and has been introduced in the Senate.