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Law360 (April 22, 2020, 5:57 PM EDT) -- A group of Democratic senators is urging congressional leaders to include state-legal marijuana businesses in relief packages meant to ease the economic burden caused by the coronavirus pandemic.
In a letter sent to Senate Majority Leader Mitch McConnell and Democratic Leader Chuck Schumer on Wednesday, the group said small marijuana businesses and other businesses indirectly involved with the industry should have access to the Small Business Administration's loan and grant programs as more relief becomes available.
"Workers at state-legal cannabis small businesses are no different from workers at any other small business — they show up to work every day, perform their duties, and most importantly, work to provide for their families," the group, led by Sens. Jacky Rosen, D-Nev., and Ron Wyden, D-Ore., wrote in the letter.
The senators noted that there are about 240,000 employees in the cannabis sector, working in 33 states and the District of Columbia.
"This lack of access to [Small Business Administration] assistance for cannabis small businesses will undoubtedly lead to unnecessary layoffs, reduced hours, pay cuts, and furloughs for the workers who need support the most," they wrote.
Another eight senators signed on to the letter, including former Democratic presidential candidates Bernie Sanders, D-Vt., and Elizabeth Warren, D-Mass.
So far, the marijuana industry has had to watch as other businesses apply for money through the Small Business Administration's Paycheck Protection Program and the Economic Injury Disaster Loan Program, which are distributing some of the $2 trillion in relief set aside by pandemic relief legislation passed at the end of March.
The Small Business Administration has said that both plant-touching marijuana businesses and ancillary services that work with the industry are ineligible for its loans, leaving many companies forced to choose between the loans or working with marijuana, the letter said.
On Tuesday, the Senate approved another $310 billion in aid to small businesses, which will replenish the Paycheck Protection Program after it ran out of funds last week. The House is expected to vote on the bill Thursday morning.
A bipartisan group from the House of Representatives sent a similar letter to their leadership on Friday, pointing out that many states have labeled marijuana businesses "essential," and yet they can't have support from the federal government to stay open.
--Additional reporting by Sarah Jarvis and Andrew Kragie. Editing by Haylee Pearl.
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