Weekly Newsletter: April 4 - April 10, 2020
This week, businesses working indirectly with the cannabis industry are deemed ineligible for federal relief, New York's legalization progress takes a hit, Michigan's market feels growing pains, and Tom Brady admits to smoking weed in high school.
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Cannabis Industry Stocks are up +2.29% for the day, likely due to many businesses hitting their lowest historical prices and bouncing back. While not all states are deeming cannabis essential, most cannabis markets are still open for business and are exploring ways to contribute to the relief effort. Despite the cannabis industry not qualifying for any federal aid or small business loans, the market still seems to be afloat for now.
Businesses That ‘Indirectly’ Work With Marijuana Industry Ineligible For Federal Coronavirus Loans
It’s not just state-legal marijuana retailers and growers that stands to miss out on federal relief loans amid the coronavirus outbreak. In addition to that restriction, which the federal Small Business Administration (SBA) confirmed last month, a wide range of businesses that indirectly service the cannabis industry are also ineligible under recently enacted legislation. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which the President Trump signed last month, provides for a Paycheck Protection Program that offers a significant amount of forgivable loans to companies with 500 or fewer employees. Cannabis businesses—as well as ancillary firms that contribute to them with products or services—are specifically excluded from those benefits, however.
>>> Trump Hires Anti-Marijuana White House Press Secretary
>>> New York Legal Marijuana Push ‘Effectively Over’ For 2020, Governor Says
>>> New Zealand Releases Medicinal Cannabis Scheme guideline and forms
>>> Marijuana Industry Groups Ask States For Coronavirus Relief Loans That Feds Won’t Provide
Michigan Marijuana Market ‘Maturing Rapidly’ But Faces Barriers To Growth, State Report Finds
Michigan’s marijuana market is “maturing rapidly” and stands to become a major component of the state’s economy, according to a new report commissioned by the state cannabis regulators. However, there are two main barriers to growth that researchers identified: 1) too many local jurisdictions have opted out of allowing marijuana businesses to operate, and 2) the process of getting cannabis products tested is excessively long.
>>> MJBizDaily announces 30% of staff are furloughed, amid other steps because of COVID-19
>>> Federal Law Stops Pot Investor From Recovering $4.7M Loans
>>> 10th Circuit Court rules IRS audit of Denver marijuana business is proper
>>> A Complete List Of NYSE And NASDAQ-Listed Cannabis Companies
Opinion: If they’re “essential,” marijuana companies should get coronavirus stimulus funds
In mid-March, the U.S. Small Business Administration (SBA) announced disaster assistance including low-interest loans of up to $2 million — yet taxpaying, state-licensed cannabis businesses do not qualify, according to the SBA. Congress went on to pass a $2 trillion stimulus package, the largest emergency relief bill in American history — but cannabis businesses are left out of that, too. Licensed cannabis businesses across the U.S. are unable to take the ordinary tax deductions afforded to other industries, leaving them saddled with an effective tax rate that is two-to-three times higher than other legal businesses. In sum, legal cannabis businesses paid an estimated $4.7 billion in federal taxes in 2017, for example (along with state and local taxes).
>>> CBD Prescription Drug, Epidiolex, Is No Longer A Federally Controlled Substance, DEA Says
>>> National Psychedelics Advocacy Group Takes Next Step In Movement
>>> FDA sends another warning letter warning more CBD companies to stop claiming their products prevent or treat Coronavirus
>>> Legal Marijuana States Had Fewer Vaping-Related Lung Injuries, Study Finds
Marijuana Was In 100-Year-Old Medical Cabinet On Antiques Roadshow, But Owner’s Brother Smoked It
In the late 1800s, it wasn’t uncommon for doctors to lawfully possess marijuana as part of a medical kit. And at a recent antique show, one person gave a glimpse of how that cannabis was stored. During an episode of Antiques Roadshow that aired on PBS on Monday, one of the featured products was a medical cabinet that featured 288 containers of “various medical roots, medical herbs and all kinds of natural remedies.” An expert estimated that it was created around 1890 or 1900.
>>> Playboi Carti Arrested on Gun and Drug Charges
>>> Tom Brady Admits To Smoking Weed In High School
>>> NIDA Director outlines potential risks to people who smoke and use drugs during COVID-19 pandemic
>>> Lawmakers Mourn Loss Of Charlotte Figi, Whose Story Inspired National CBD Movement And Helped Change Policies