Letter to Nancy Pelosi, Speaker of the House, and Kevin McCarthy, Minority Leader - Reps. Blumenauer, Lee, McClintock, and Young Urge House Leadership to Include Cannabis Businesses in Next Phase of COVID-19 Relief

Letter

Dear Speaker Pelosi and Leader McCarthy:

Thank you for your efforts to address the needs of the American people during the COVID-19
outbreak. As you draft the next COVID-19 relief bill, we write to ask that you address one of the
shortcomings of the CARES Act--the exclusion of state-legal cannabis businesses and their
employees. The COVID-19 crisis response demands the full participation of the American people,
businesses, and workforce. However, without relief, a very large population is left without the
means to execute the required public health measures and continue to provide financially for their
families.

The state-legal cannabis industry is a major contributor to the U.S. economy and workforce,
employing over 240,000 workers across 33 states and four territories, and generating $1.9 billion
in state and local taxes in 2019.1,2 As states respond to the COVID-19 crisis by shuttering
businesses to mitigate the virus' spread, jurisdictions across the country have recognized cannabis
businesses as "essential." Essential businesses, in many places, can operate during the pandemic
provided they abide by required public health safety measures. Like other businesses with
continued operations, cannabis businesses have met the moment by preserving access to treatment
for patients with chronic conditions, donating protective clothing, and manufacturing equipment
for medical use. However, unlike other small businesses, cannabis businesses are not eligible for
the CARES Act programs.

State-legal cannabis businesses need access to CARES Act programs to ensure they have the
financial capacity to undertake the public health and worker-focused measures experts are urging
businesses to take. This includes access to and participation in SBA's loan programs--financial
support that is designed to pay workers, group health care benefits, and family or sick leave.

Current SBA policies prevent cannabis businesses from accessing the Paycheck Protection
Program (PPP), Emergency Economic Injury Disaster Loans (EIDLs), EIDL grants, or SBA loan
forgiveness -- programs intended to help businesses fight COVID-19 in safe and equitable ways.
Specifically, the PPP is designed to keep workers at America's 30 million small businesses paid.
Workers at state-legal cannabis businesses are no different from workers at any other small
business--they show up to work every day, perform their duties, and most importantly, work to
provide for their families. This lack of access will undoubtedly lead to unnecessary layoffs,
reduced hours, pay cuts, and furloughs for the workers of cannabis businesses who need support
the most. The COVID-19 outbreak is no time to permit federal policy to stand in the way of the
reality that millions of Americans in states across the country face daily--that state-legal cannabis
businesses are sources of economic growth and financial stability for thousands of workers and
families, and need our support.

Given the nature of the epidemic, we must ensure that everyone has the capacity to carry out the
recommended public health and worker-focused measures. Without doing that, we risk
undercutting the public health efforts nationwide. We ask that House leadership include provisions
to allow state-legal cannabis businesses and the businesses who work with this industry to access
the critical support they need during this unprecedented time.
We thank you for your consideration of our request.

Sincerely,