Steven Schain
In a policy notice effective April 3, the U.S. Small Business Administration (SBA) updated its standard operating procedures (SOP) to prohibit providing loans to both marijuana- and hemp- related businesses and businesses deriving any gross revenue from sales to marijuana related businesses (MRBs) including those providing lighting, hydroponic equipment or testing services (SBA policy notice).
Beyond failing to define what a hemp related business is and being nearly impossible to implement, the SBA Policy Notice will derail hundreds of cannabis-supporting- businesses and defeat the SBA’s core objective of provide financing opportunitiesto those precluded from attaining mainstream financing including minorities and veterans.
