Cannabis farms in California, Oregon threatened to be decimated by wildfires

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The two states have reportedly lost millions of dollars due to the ongoing fires

After large wildfires affected multiple areas of California and Oregon, small businesses impacted by this disaster are eligible for federal disaster relief, unless, of course, the business is tied to marijuana. The same old story happens once again, with the Small Business Administration (SBA) confirming that cannabis companies continue to be excluded from any financial aid because of the plant’s illegal status on the federal level. This news was confirmed shortly after the agency stated that people in certain areas of both states could start applying for disaster assistance loans. California and Oregon are reportedly losing millions of dollars in cannabis crops, with no federal relief in sight.

“Marijuana businesses are not eligible to apply for SBA disaster loans,” SBA spokesperson Carol Chastang said. Sadly, this relief does not extend to agriculture businesses either, so not even legal hemp farmers qualify for any financial relief regardless of the crop’s legal status from 2018. On the other hand, people who work for a marijuana or hemp business whose main residence resulted damaged by or destroyed by the fires can apply for assistance. “However, they would be ineligible for SBA assistance if they were running the marijuana business out of their home,” Chastang said.

There are some cannabis companies that are in serious problems due to the impact of the rampant wildfires. According to the Oregon Liquor Control Commission, at least 20% of marijuana businesses in the state were encouraged to evacuate their facilities. Some regulators are asking business owners, including those from the cannabis industry, to fill out surveys to find out more about how extensive the damage to these companies actually is. In California, the losses are expected to reach at least $20 million.