What The Stimulus Package Means For Hemp

With the passage of the economic rescue plan, help should be on the way for the hemp industry.
What The Stimulus Package Means For Hemp
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Entrepreneur Staff
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Last week, the U.S. Congress passed the $2 trillion CARES Act, which, in part, expands key benefits to small specialized businesses such as the hemp industry. The stimulus comes in response to the catastrophic heath and financial distress caused by coronavirus COVID-19. 

While the word "hemp" is never mentioned in the bill, there is ample reason for those in the hemp industry to be optimistic. "There is great news for hemp farmers as well as small businesses in the hemp space," according to a newsletter released by the U.S. Hemp Roundtable, a coalition of leading companies and organizations advocating on the federal and state level for safe hemp and CBD products.

Key benefits to the hemp business

The following is a list of measures that will directly impact those in the hemp industry.

  • $17 billion for the SBA’s Business Loans Program Account for payment of covered loans guaranteed by SBA under the Small Business Act
  • $10 billion for SBA’s Emergency Economic Injury Disaster Loans program
  • $265 million for SBA’s Entrepreneurial Development Program
  • In general, those with federally-backed mortgaged loans secured by USDA may request forbearance for up to 180 days, during which no fees, penalties, or interest will accrue.

More to come?

Industry analysts hope more relief will come in further rounds of the stimulus. "That doesn't necessarily mean dollars," says Jonathan Miller, General Counsel to the US Hemp Roundtable. "It may mean simple regulatory relief to help hemp farmers do banking and sell their products. 

For now, he says the hemp industry has their immediate sight set on figuring out how they can help in a time of an emergency. "We're focused less on how government can help us and how we can help the relief efforts," says. 

He points to a number of hemp companies that are providing much-needed hand sanitizer, including Abacus Health Products, Turning Point Brands, and American Shaman

 

 

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