There's been plenty of confusion coming from the Trump administration regarding marijuana. Some officials say they support states rights on the issue, but then you have Jeff Sessions repealing protections for those states. But a new policy may show the Trump administration's true colors.
The U.S. Small Business Administration (SBA) quietly changed their policies to tighten restrictions on banks giving loans to businesses in the cannabis industry. The SBA already prohibited loans to businesses that directly sold or grew marijuana, but the new rules prohibit loans to companies that are indirectly conducting business with cannabis ties.
The question is how far will this new policy go. What types of businesses would be prohibited from loans? Would a construction company that helps build a legal marijuana dispensary be considered indirectly part of the industry? What about a garden supply store that sells supplies to cannabis producers?
The SBA says businesses will now have to prove they do not generate revenue in ventures related to the buying and selling of marijuana.
This move also comes as "pick-and-shovel" trades are becoming more popular with the cannabis industry. This means investors are putting their money into businesses related to the cannabis industry (such as garden supplies) so they can reap the benefits of the growing industry without direct links to marijuana companies.
Of course, cannabis companies are no strangers to restrictive financing options and have had to get creative to generate cash in the past. But you'd think at some point the government would stop putting up unnecessary roadblocks.