The Trump Administration may have found a way to crack down on legal cannabis, and it could be devastating to not just the legal cannabis industry, but all of the businesses who choose to do business within it.
The US Small Business Administration (SBA) has changed its lending rules to make it even more difficult for dispensaries and other cannabusinesses to do business. The new rule states that banks may no longer offer SBA backed loans to any business that does business in the cannabis industry.
The change, which went into effect at the beginning of April, will affect a great deal more businesses than dispensaries and headshops. This can also affect ancillary businesses, such as gardening supply stores that might sell a growing facility soil or a lighting system to a grow house.
The SBA’s Decision is Not a Coincidence
It’s no coincidence that the SBA has chosen this moment to make this move. The Trump administration recently backed off on their pledge to make life harder for the cannabis industry. This does not mean in any way that they have given up. Trump (or rather his advisors) probably realize that the optics of going after the cannabis industry are not very good, considering how cannabis is more popular than his entire administration.
One thing that is for sure: this will drastically change the way business is done in the cannabis industry. How drastically, is a little early to tell. It won’t be a positive change, however.
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Will this be the end of the cannabis industry as we know it, or are the SBA and the Trump administration just blowing smoke? Tell us in the comments!