Cannabis businesses have been deemed essential in some states, including California, but their operations remain federally illegal.

Industry leaders and some members of Congress are highlighting that dichotomy and appealing for cannabis businesses to have access to emergency funding and other avenues of financial assistance. They say those operations, too, are navigating uncertainty, furloughing workers, closing facilities and facing potential financial ruin because of the coronavirus pandemic.

In recent weeks, cannabis organizations and several federal lawmakers have called for the extension of Small Business Administration loan programs to state-licensed cannabis businesses as well as ancillary companies — firms that are not “plant-touching” but rather provide products and services to the emerging industry.

“This industry is considered essential by most of the states that we’re operating in,” F. Aaron Smith, executive director of the National Cannabis Industry Association, said in an interview with CNN Business. “If that’s the case, it only makes sense that we should also have access to the lending programs … and just to be treated fairly.”

The NCIA and other advocacy organizations say now is also the time for the government to grant long-desired policy requests, notably the ability to access banking services. Covid-19 and its potential to survive on surfaces adds a further complication to the cash-centric operations, the National Organization for the Reform of Marijuana Laws noted in a policy memo released April 1.

“ is a public safety hazard; it always has been,” Smith said. “This is an opportunity to, once and for all, fix that issue by passing the SAFE Banking Act.”

To achieve greater financial access is a tough ask, especially now, said cannabis investor Rob E. Hunt, of Linnea Holdings. He noted that the language in the recent $2 trillion stimulus package specifically excluded both plant-touching and ancillary cannabis businesses.

“Right message. Wrong time,” Hunt said. “This should be the catalyst to drive federal policy change, but saying it now is falling on deaf ears.”

The-CNN-Wire

Cannabis Companies Want Access to Covid-19 Financial Help