Some cannabis companies are eligible to receive PPP loans

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Whether intentional or through a loophole, certain cannabis companies are receiving major financial support from the government

One of the most discussed topics in the cannabis industry since the beginning of the coronavirus pandemic is the fact that the federal government turned its back to all cannabis businesses, as well as any other company servicing the industry. Now, for some yet unclear reason, a technology company with connections to the cannabis industry has gotten a loan approved by the Small Business Administration (SBA). The company, MassRoots, confirmed that it had received a $50,000 Personal Protection Program (PPP) this month, and apparently, it has not been the only one getting this kind of support.

MassRoots CEO and chairman Isaac Dietrich went public with the news; saying said that his company is not the only one that has gotten these benefits. “This is one of the hottest topics in cannabis that no one wants to talk about,” declares Dietrich. According to the information he shared, he received a confirmation email on May 3 and adds, “We were notified via email on Sunday,” Dietrich recalled during a phone interview. “I was ecstatic, as the PPP loan enabled us to meet our obligations to our employees.” He added that the company has five employees and that this financial aid has helped them to support their families, cover medical bills and pay rent.

Now the general question is if this was a mistake from the SBA; according to the Payment Protection Act that was authorized in April under the CARES Act, none of the businesses serving the cannabis sector in any way are eligible for these funds. This program was created to provide small businesses with enough funds to take care of payroll costs for eight weeks tops during the coronavirus pandemic. In most cases, those loans are forgiven.