In Lieu Of SBA Loans, Cannabis Sector Turns To State Options – JD Supra

In the economic downturn triggered by the COVID-19 pandemic, cannabis companies operating in the marijuana space cannot look to the federal Small Business Administration to obtain Economic Injury Disaster Loans or Paycheck Projection Loans.

But there are some state and local programs available to those companies. Below is a list of state loans and other assistance programs that appear to be open to cannabis companies. Many of these programs are first-come, first-served, so companies in need should apply soon.

Our state-by-state list includes details on loans offered by a handful of key localities, but additional cities and towns may offer a local loan or grant programs. Some states are also offering tax assistance, which will be covered in a separate alert.

Alaska

At this time, Alaska has not provided any loan or other assistance outside of the federally backed SBA loan and other relief programs.

Arizona

At this time, Arizona has not provided any loan or other assistance outside of the federally backed SBA loan and other relief programs.

Arkansas

On March 20, the Arkansas Economic Development Commission established the Quick Action Loan Program to assist businesses negatively affected by the COVID-19 pandemic. The program is funded by $7 million of allocations from multiple Arkansas state funds and includes both loan guarantees and direct loans to businesses. Companies in the supply chain of essential goods and services, including healthcare, food manufacturing, and logistics, will receive preference. Fox has confirmed that as of this time, the Quick Action Loan Program is accepting applications from licensed dispensaries and cultivation centers. Additional information regarding the Quick Action Loan Program can be found here.

California

There are several financial assistance options to small businesses in California, such as the California Capital Access Program (CalCAP), the Disaster Relief Loan Guarantee Program and the Jump Start

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