US House Approves Cannabis Banking as Part of the Latest COVID-19 Relief Bill | Gigs 420

5/23/2020
Olusegun Akinfenwa
US House Approves Cannabis Banking as Part of the Latest COVID-19 Relief Bill | Gigs 420
 
On Friday, May 15, 2020, the House approved a $3 trillion coronavirus economic relief package. The bill includes the SAFE Banking Act, which serves as provisions that would allow banks to provide financial services to cannabis businesses without fear of being sanctioned by the federal regulators. For many years, cannabis businesses in states where marijuana is legal to have been having challenges with various federal regulations, including rights to take proceeds from their businesses to banks. This approval by the House is cheering news to the operators in the industry, even as we wait to know what the Senate stance would be on the Bill.

 

U.S. Marijuana Industry and SAFE Banking Act Timeline
 
In September 2019, the House had voted 321-103 to approve the bill that clarified that proceeds from genuine cannabis businesses would not be considered as illegal. It also directed federal regulators to come up with rules on how they would supervise how such proceeds are banked. The passage came as a relief for industry regulators just as banks also threw their weight behind the legislation, asking for clarification on whether they could have business with marijuana companies in states where cannabis is legal. Unfortunately, the bill never made it beyond the Senate Banking Committee. As the topic has once again been brought to fore, all eyes would be on the Senate to see what comes out of it.
 

Summary of the COVID-19 Relief Bill

The coronavirus pandemic stimulus bill is a 1800-page act, officially known as the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. It is intended to provide relief to government agencies, businesses, and individuals affected by the economic downturns arising from coronavirus pandemic. The bill provides additional direct payments of $1,200 per individual, expands various tax deductions and credits, and establishes a fund to provide grants for employers for pandemic premium pay for workers offering essential services. Though the cannabis industry has gained essential status in most of the US states the bill does not include relief for marijuana small businesses, which were also left out in the former COVID-19 relief package. This leaves stakeholders wondering what will become of small cannabis companies facing the economic downturn just like other businesses.

How Will the Cannabis Industry Benefit from the SAFE Banking Act?

If the bill pushing for banks to allow proceeds from cannabis companies is eventually approved, these businesses will have one less thing to worry about as they would be able to leverage the banking system for growth and ease. Currently, many marijuana companies are with very limited options when it comes to managing the proceeds from their businesses. For instance, they have been relying on means that aren’t considered too safe, such as doing business in cash or dealing with just a few small financial institutions. The federal anti-money laundering laws have been preventing banks from taking such proceeds, as they risk being sanctioned by federal regulators. For an industry that is predicted to reach over $97 billion market value by 2026, the importance of mainstream banking cannot be overemphasized.

How Gigs 420 Can Help You Get Cannabis Jobs

The marijuana industry is fast becoming competitive due to the growing number of job seekers seeking opportunities in the field. Beyond having the skillsets for your dream job, you should also be in the know about the happenings in the industry, especially in terms of cannabis job opportunities. And this is where Gigs420.com can help.

Here at Gigs420.com, we are dedicated to providing a streamlined environment for job seekers and employers to quickly find and post jobs in the marijuana industry. By using our platform, landing your dream job in the cannabis field becomes easier. We also provide an update on the developments within the industry across the United States. For recent job offers check out click here.