The federal Small Business Administration (SBA) says that, as part of its efforts to undo the Biden administration's policies on financial lending, it has updated guidance clarifying that marijuana businesses are ineligible for key loan programs.
In a report about the SBA policy changes that was published on Monday, congressional researchers said the agency is updating guidance for "its two largest small business loan programs, the 7(a) and 504 loan guarantee programs," which includes making clear that the cannabis industry is precluded from those services.
"Other new loan eligibility modifications in the SOP include…reinstating pre-2023 guidance that removes eligibility for businesses with operations related to marijuana, hemp, and cannabidiol," it says.
While the latest SBA guidance that will take effect on June 1 reinstates similar language around cannabis that had been excluded under the last two versions that came out when Joe Biden was president, legal experts have pointed out that those omissions did not necessarily signal that marijuana businesses were freed up to access federal loans under the program during that period.
Read more at Marijuana Moment