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Congressional Bill Introduced to offer SBA Loans to Small Marijuana Firms

The US House Small Business Committee chaired by Nydia Velazquez introduced a bill related to granting funds to Cannabis-based businesses. As per the proposed legislation, the bill would allow the disadvantaged communities of the US for the first time to apply for loans provided by the federal Small Business Administration.

A week before the introduction of the bill by the US House Small Business Committee, the industry advocates urged Congress to offer its financial assistance programs to marijuana-related firms. Until now,  the prospects for the measure are not cleared completely. In the bill, Ensuring Safe Capital Access for All Small Business Act of 2019, it is clearly mentioned that all the direct and indirect cannabis firms will be eligible for SBA-backed financial assistance in the form of microloans and loan guarantees.

With the legalization of marijuana and CBD oils in many states, many CBD business loans online services have come into existence. The number of applicants for hemp business loans have also increased significantly. Now, with the proposition of the legislation by the US government, borrowers who face difficulty in accessing the credit from conventional banking sources will be able to get loans to start the cannabis-based business.

As per the official update on SBA’s website, such programs grant a maximum loan amount of $5 million. It is also mentioned that the maximum amount covered under the total SBA guarantee is $3.75 million. Velazquez, a Democrat from New York tweeted that the main aim of the legislation is to provide a platform to offer secure financing to women and underprivileged people who want to enroll themselves in cannabis business.

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