The cannabis sector is excluded from coronavirus loans

The COVID-19 pandemic keeps harming the world’s economy and many countries are starting to plan measures to counter its economic impact. Loans are one of the ways governments are helping the more ravaged sectors. Sadly, the cannabis companies are being excluded from these economic packages. Companies’ owners are raising awareness around the world asking politicians to take them into consideration.

Governments and central banks are pouring money into the world’s economy, in the hope of containing the effects of the coronavirus pandemic on the global economy.

In Germany, boastful announcements come from Altmaier and Scholz, but are not processed for weeks and the entrepreneurs go bankrupt in the European country. Meanwhile, the United States of America has already transferred a lump of dollars to every citizen.

If you want to know more about how many governments are ignoring the cannabis sector in these difficult times, how not receiving loans could bankrupt many cannabis companies and to find out the latest hemp news, download the Hemp.im mobile application.

German and American politicians are ignoring the cannabis industry

Furthermore, the Small Business Administration (SBA) now has a special credit program for smaller companies. However, because cannabis has now been banned at the federal level in the USA, the cannabis industry will probably not get these much-needed corona loans. Even indirect business partners of the industry are affected by this arbitrariness.

This situation is made clear by those responsible at the Small Business Administration (SBA). The companies operating in the cannabis sector can forget about a loan, have to take care of themselves and are treated like second-class, semi-criminal companies.

So far, the cannabis industry in the USA has created hundreds of thousands of jobs, generated billions in taxes and enjoyed a high level of popular support in recent years.

The planners and strategists around president Donald Trump simply ignore this. German politicians are also ignoring the cannabis industry, relying completely on ideology, and practically destroying the cannabis business together with the virus from China.

Cannabis companies are alone during the crisis

These are some examples of the companies which will not get any loans from the government:

Cannabis shops that sell hemp and cannabis as luxury food or medicine.
Hemp farmers with the appropriate farms and procedures on the field or in the indoor hall.
Processing plants that produce food and beverages such as concentrates or hemp.
Companies that are indirectly involved in the cannabis industry, such as manufacturers of LED lamps for growing cannabis, irrigation specialists or soil experts.
Laboratories that test hemp and its related products.
Advertising agencies with anything related to cannabis in their portfolio.
Consultancy firms that lobbies on hemp and cannabis or advises the management on legal issues related to this sector.
Finally, cannabis industry shops that don’t have cannabis or hemp in their inventory but sell bongs, papers and vaporizers could also end up on this exclusion list.

In Germany, it’s only worse. There, the cannabis industry is not only financially ignored during these difficult times but should also expect arbitrary raids even against customers.

Government fines could harm even more the cannabis sector

High fines from the government are particularly popular at the moment and are often proclaimed, so a cannabis company making false claims is fined up to $250,000 when applying for a credit that could help sustain the business and future endeavors. In addition, these numbers can go even higher, of course, with applications directly to federal authorities it can go up to a million dollars.

Absurdly enough, cannabis companies pay taxes and social security contributions, they also pay taxes for their employees, but in times of need, they are treated like dirt. This is a little surprising for the USA, where capital and innovation are important. In Germany, arbitrariness, fake news and persecution of cannabis are commonplace among politicians like Merkel and Söder.

(Featured image by Nattanan Kanchanaprat from Pixabay)

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J. Frank Sigerson

J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.