Hemp Industry Could Benefit from Economic Stimulus Package Offered by the U.S. Government Amid Coronavirus
- Potential financial relief may be available for hemp farmers and businesses.
- The government has agreed to spend $2 trillion to support the economy struggling due to the coronavirus.
- This bill would NOT include marijuana businesses and cultivators.
Hemp farmers and business owners could soon see some financial relief from the economic stimulus package that the U.S. government is proposing to help stimulate the economy during the pandemic. The Senate and the White House have agreed to spend $2 trillion to help support the U.S. economy.
This stimulus package goes down as the largest economic rescue package in the history of the U.S. And although the bill is subject to change by the House for any controversy that may stem from the language of the bill, it is expected to receive a vote on Wednesday.
Jonathan Miller, an attorney from Kentucky and director of U.S. Hemp Roundtable, feels that farmers and businesses owners should be eligible for relief because hemp has been legalized on a federal level.
“Now that federal law teats hemp as an agricultural commodity and not a controlled substance, we would expect that distressed hemp farmers would have access to the same emergency federal funds as growers of other crops,” Miller stated.
As it stands, the stimulus package would not provide finances for marijuana cultivators and businesses due to its lack of federal legalization.
Key Points of the Stimulus Package
This proposed economic stimulus package would benefit thousands upon thousands of legal businesses across the country, with extra money being put toward unemployment, loans to industries, funding for hospitals, and so on.
Here a couple key points of the stimulus package that would benefit the hemp industry the most:
Relief for Farmers – This package would provide extra borrowing money and add an additional $50 billion to the industry’s creditor. Senator John Hoeve, a Republican who is the chair of the Senate Agriculture Appropriations Committee, stated that the stimulus package would restore the U.S. Department of Agriculture’s Commodity Credit Corp. spending authority.
Small Business Relief – In this stimulus package, there is up to $10 million of emergency relief available for each small business. The entire value of the proposed Small Business Administration (SBA) emergency grants is $10 billion.
An additional $17 billion was provided for the SBA to cover the costs of monthly payments for small businesses with current SBA loans.
Hemp farmers and businesses can soon breathe a sigh of relief as the bill is well on its way toward approval. And with the uncertainty of how the sales trend for hemp products will change during this pandemic, the money could not come at a better time.
Until then, all we can do is watch and see how the outbreak of the coronavirus and closing of small businesses affects the sale of CBD products.
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