The U.S. Small Business Administration bars banks from issuing SBA-backed loans to marijuana- and hemp-related companies, Maine lawmakers override a veto of key adult-use legislation, and Scotts Miracle-Gro consolidates its MJ operations.
Here’s a closer look at some notable developments in the cannabis industry over the past week.
SBA shuts off the spigot
Small businesses serving the marijuana and hemp industries are expected to take a hit under new lending guidelines issued by the federal Small Business Administration.
The revised guidance, published in early April, prohibits banks from issuing SBA-backed loans to any company that has a direct business relationship with a cannabis or hemp business.
For plant-touching companies, the rules are nothing new for an industry accustomed to getting the cold shoulder from financial institutions, said Tyler Beuerlein, vice president of business development at Hypur, an Arizona payment and banking technology business that serves marijuana firms.
“It’s been the biggest conundrum for the industry since day one,” he said.
But the rule change could produce major fallout for companies that provide services and products to cannabis businesses, said Steve Schain,