State-legal hemp businesses are eligible for aid under the $2.2 million coronavirus stimulus package signed by President Donald Trump last week; however, medical and recreational cannabis firms will not have access to the relief package due to federal cannabis prohibition.
“Under the CARES Act, small businesses can receive loans to cover payroll expenses, health care benefits, employee salaries, rent, utilities and interest on mortgage debt,” according to Vince Sliwoski of the law firm Harris Bricken. “To qualify for these ‘Paycheck Protection Program’ loans, businesses must employ 500 employees or less, including all full-time and part-time employees. Nearly all U.S. hemp businesses fall into this category.”
EcoGen Laboratories Head of Sales Doug Watson explained that the company is working on its own program to help its partners weather the coronavirus storm. The company’s planned program would buy back hemp from farmers. He said he is “hopeful” the stimulus package will help the hemp industry.
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