stimulus bill cannabis banking

House Democrats led by Speaker Nancy Pelosi (D-CA) unveiled a new stimulus bill this week that includes cannabis banking reform.

Cannabis Banking Reform Details

The language is similar to the SAFE Act, which passed the House last fall by an overwhelming margin. But it has been stalled due to staunch opposition from Senate Banking Chair Mike Crapo (R-ID). Idaho is one of the few states in the nation that doesn’t even allow CBD to be sold within its borders. 

Reform has been blocked. That is despite bipartisan support from the American Banking Association, several Governors, Attorneys General, and State Treasurers, among others.

According to a National Cannabis Roundtable survey, one-third of cannabis businesses will close if they do not receive federal relief.

“Cannabis businesses are dealing with the same hardships as other small businesses. Without the same critical financial tools and reliable banking services,” said Saphira Galoob, executive director of the National Cannabis Roundtable. “Providing access to banking services removes some of the shackles that are holding back the full potential of the fastest-growing sector of the US economy.”

The bill has relief funds that small businesses not plant-touching can access. This is due to a specific Small Business Administration (SBA) rule. 

Long-time cannabis reform champion Earl Blumenauer (D-OR) wrote a letter signed by 39 other House Members. It urged the SBA to allow cannabis firms access to relief funds.

“The inclusion of the SAFE Banking Act… is a positive development. But one that’s akin to applying a band-aid to a gaping wound,” said NORML Political Director Justin Strekal. “In the majority of states, these cannabis businesses have been deemed essential during this pandemic. Those small cannabis businesses facing tough economic times are essentially being told by Congress to shutter their doors and fire their employees.”

Partisan Politics and the Cannabis Industry

While there has been great bipartisan work to address the crisis, this bill does not seem to have garnered such a response. Senate Republicans and the White House have already rejected the bill as a liberal wish list. 

What is it going to take for Mitch McConnell to wake up and see that the American people need help and need it now?” Senate Minority Leader Chuck Schumer (D-NY) said.

The previous stimulus bill signed into law also excluded plant-touching businesses.

Currently, plant-touching businesses have a very difficult time accessing banking services. This includes opening a bank account, processing debit/credit cards, and securing loans from a bank. Most are forced to operate on a cash business which causes many headaches in our digital age.  The lack of proper banking, many believe, is hindering the growth of the industry.

Banks found doing business with cannabis firms would not be penalized should it pass. 

The Politics of  a Stimulus Bill 

The stimulus bill would spend $3 trillion to reinvigorate the economy.

For reference, in 2009, during former President Barack Obama’s first 100 days during the Great Recession,  moderate Democrats didn’t want a one trillion dollar stimulus because of conservative worries about the deficit. 

The Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act would provide relief to different sectors of the economy. The stimulus bill would give people a second $1200 stimulus check.

Unemployment hit 14.7 percent last week, a level not seen since the Great Depression due to the Coronavirus prevention measures. Desperate times call for desperate measures.

“We must think big for the people now. If we don’t it will cost more in lives and livelihood later,” Pelosi said regarding the stimulus bill. “Not acting is the most expensive course.”

Shortly after Franklin D. Roosevelt was inaugurated as president during the Great Depression, prohibition was repealed to stimulate the economy, among other reasons.

Perhaps history will repeat itself.

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Dan Ulloa
Dan Ulloa is the Editor and Publisher of Heady NJ, with a background in politics, journalism, and a passion for the cannabis community. He curates and publishes news, events, and insights on the industry. Dan has been a leading voice in the New Jersey cannabis scene, educating and informing the public about this rapidly evolving industry. He ranked #35 on the INSIDER NJ Cannabis Power List out of 100 in 2022.


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