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Cannabis and Hemp Companies Eligible for SBA Loans and Tax Benefits

by Mike Goral
April 15, 2020

While much attention has been paid to the many federal aid packages and tax benefits available to companies during this COVID-19 crisis, some additional attention needs to be paid to which programs are available to cannabis and hemp companies.

The 2019 Policy Notice declares that both Direct and Indirect Marijuana Businesses are not eligible for SBA relief. In general, cannabis business cannot receive assistance from the U.S. Small Business Administration (SBA) under the Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R. 6074) because they cannot receive aid in the form of federally-backed loans. However, hemp and hemp-derived products that were legalized under the 2018 Farm Bill are eligible for SBA Disaster Loans.

Outlined below is a chart to help you understand what aid packages and tax benefits are available for the cannabis and hemp industry.

Aid Packages and Tax Benefits Available for Cannabis and Hemp Companies

Aid Packages and Tax Benefits Available for Cannabis and Hemp Companies

Here is a list of resources to help you learn more about the tax benefits and aid packages:

The Armanino cannabis team is here to help answer your questions.

For the latest regulatory updates and more information on keeping your cannabis business thriving through disruption, visit the Armanino COVID-19 Resource Center.

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