In late April, the US House of Representatives and Senate voted to pass a $484 billion economic stimulus package providing further aid to small businesses, which was signed by the President. The bill provides additional funding for the small business lending program that had quickly been depleted, and it appears that the hemp industry is positioned to take advantage of this new round of funding.
State-legal cannabis companies in the United States must deal with the added complexity of continuing to operate in violation of federal law, and with everything that entails
Due to the federal illegality of cannabis, companies operating in the sector are caught between a rock and a hard place. As we previously wrote, neither federal aid (including Economic Disaster and Paycheck Protection Program loans), nor bankruptcy protection, are available. Like many other businesses caught in the maelstrom, cannabis companies are no doubt scouring their leases and supply contracts for force majeure provision (or other similar provisions), to see if they provide any relief.
Businesses in the cannabis industry are no stranger to complex and largely unintuitive laws and regulations governing their operations. What they may not be aware of, however, are the unique and burdensome tax requirements resulting from operating in an industry that is still illegal under federal law.
Sourcing insurance has always been a challenge for cannabis companies, although many states require proof of insurance for cannabis business applicants seeking licences.