Legislation introduced today in the US House of Representatives would provide cannabis businesses and ancillary service providers that conduct businesses with cannabis related companies access to fundamental banking services. The language is part of the CARES II package and mirrors the SAFE Banking Act that was passed by the US House of Representatives last year. Under current law, cannabis businesses and their service providers have limited or no access to fundamental banking services.
“Cannabis businesses are dealing with the same hardships as other small business without the same critical financial tools and reliable banking services. Providing access to banking services removes some of the shackles that are holding back the full potential of the fastest growing sector of the US economy,” said Saphira Galoob, NCR Executive Director. “NCR applauds the House for acknowledging the legitimacy of cannabis businesses, and especially the work of Congressman Perlmutter who has been a tireless champion for the industry and its thousands of small businesses and workers.”
Despite being declared essential businesses by the majority of states with legal cannabis markets, cannabis businesses are barred from traditional banking services. A recent survey conducted by Leafly and the National Cannabis Roundtable shows that providing cannabis businesses COVID-19 federal relief and stimulus funds would save tens of thousands of jobs. Eighty five percent of companies surveyed said they would be able to save jobs with access to stimulus money, whereas 30% said they will go out of business without access.
Providing access to banking services for cannabis companies has broad support among elected officials and policymakers. Treasury Secretary Steve Mnuchin, 20 governors, 38 attorneys general, the National Association of State Treasurers, 25 state banking regulators, and bank trade associations from all 50 states have voiced support for cannabis banking reform.
“Not only will this lead to more economic growth and jobs, it will make our communities safer. Access to banking services for cannabis businesses will also secure billions of dollars in revenue by providing states with the means to bank, track and tax the legal cannabis economy. More transparency will also give law enforcement and financial services providers the ability to prevent money laundering and keep illegal money out of our financial system.”