At present, cannabis businesses are not eligible for small business loans, as the Small Business Administration (SBA) does not recognize such establishments.
The MORE Act would allow small, legal cannabis businesses the opportunity to apply for loans, as well as grant them access to Small Business Administration grants.
Further, a trust would be established and funded by a federal five-percent tax on cannabis retail sales. These funds would be available for draw by minority owners.
Widespread Economic Benefits
The MORE Act could also have widespread economic impact.
As the U.S. faces the COVID-19 pandemic and threat of economic recession, could a cannabis repeal alleviate some of the pressure?
Historically, the end of alcohol prohibition in 1933 created hundred of thousands of jobs and generated sizeable tax revenue.
If cannabis was federally legalized, it has been estimated to generate more than $175 billion in federal sales through 2025 and add over 1.5 million jobs by 2026.
If the bill advances in the Senate, it will likely face additional challenges. As of now, legislation is considered unlikely to pass Senate. Regardless, this historic House vote is expected to build more momentum toward eventual federal decriminalization and legalization.