117 S5131 IS: Fair Access for Cannabis Small Businesses Act U.S. Senate 2022-11-17 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II117th CONGRESS2d SessionS. 5131IN THE SENATE OF THE UNITED STATESNovember 17, 2022Ms. Rosen introduced the following bill; which was read twice and referred to the Committee on Small Business and EntrepreneurshipA BILLTo ensure that certain loan programs of the Small Business Administration are made available to cannabis-related legitimate businesses and service providers, and for other purposes.

1.

Short title

This Act may be cited as the Fair Access for Cannabis Small Businesses Act.

2.

7(a) loans to cannabis-related legitimate businesses and service providers

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following:(38)

Loans to cannabis-related legitimate businesses and service providers

(A)

Definitions

In this paragraph:(i)

Cannabis

The term cannabis has the meaning given the term marihuana in section 102 of the Controlled Substances Act (21 U.S.C. 802).(ii)

Cannabis product

The term cannabis product means any article that contains cannabis, including an article that is a concentrate, an edible, a tincture, a cannabis-infused product, or a topical.(iii)

Cannabis-related legitimate business

The term cannabis-related legitimate business means a manufacturer, producer, or any person or company that is a small business concern and that—(I)engages in any activity described in subclause (II) pursuant to a law established by a State or a political subdivision of a State, as determined by the State or political subdivision; and(II)participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products.(iv)

Manufacturer

The term manufacturer means a person who manufactures, compounds, converts, processes, prepares, or packages cannabis or cannabis products.(v)

Producer

The term producer means a person who plants, cultivates, harvests, or in any way facilitates the natural growth of cannabis.(vi)

Service provider

The term service provider—(I)means a business, organization, or other person that—(aa)sells goods or services to a cannabis-related legitimate business; or(bb)provides any business services, including the sale or lease of real or any other property, legal or other licensed services, or any other ancillary service, relating to cannabis; and(II)does not include a business, organization, or other person that participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products.(vii)

State

The term State means each of the several States, the District of Columbia, Puerto Rico, and any territory or possession of the United States.(B)

Loans

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), the Administrator may not decline to provide a guarantee for a loan under this subsection, and a lender may not decline to make a loan made under this subsection, to an otherwise eligible small business concern solely because the concern is a cannabis-related legitimate business or service provider..

3.

Disaster loans to cannabis-related legitimate businesses and service providers

Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended by inserting after paragraph (15) the following:(16)

Assistance to cannabis-related legitimate businesses and service providers

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), the Administrator may not decline to provide assistance under this subsection to an otherwise eligible borrower solely because the borrower is a cannabis-related legitimate business or service provider (as defined in subsection (a)(38)). .

4.

Microloans to cannabis-related legitimate businesses and service providers

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)(13)) is amended by adding at the end the following:(14)

Assistance to cannabis-related legitimate businesses and service providers

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), the Administrator may not prohibit an eligible intermediary from providing assistance under this subsection to an otherwise eligible borrower solely because the borrower is a cannabis-related legitimate business or service provider (as defined in subsection (a)(38)). .

5.

Small business investment company debentures to finance cannabis-related legitimate businesses and service providers

Part A of title III of the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended by adding at the end the following:

321.

Debentures to finance cannabis-related legitimate businesses and service providers

(a)

Guarantees

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), the Administrator may not decline to purchase or guarantee a debenture issued under this title to an otherwise eligible small business investment company solely because the small business investment company provides financing to an entity that is a cannabis-related legitimate business or service provider (as defined in paragraph (38) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)).(b)

Other assistance

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), the Administrator may not prohibit a small business investment company from providing assistance under this title to an otherwise eligible small business concern solely because the small business concern is a cannabis-related legitimate business or service provider (as defined in paragraph (38) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)).

.

6.

State or local development company loans to finance cannabis-related legitimate businesses and service providers

Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the following:

511.

Loans to finance cannabis-related legitimate businesses and service providers

(a)

Guarantees

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), the Administrator may not decline to guarantee a debenture issued under this title for the purpose of making 1 or more loans to small business concerns solely because the small business concern is a cannabis-related legitimate business or service provider (as defined in paragraph (38) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)). (b)

Other assistance

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), a qualified State or local development company may not decline an application for a loan under this title submitted by an otherwise eligible small business concern solely because the small business concern is a cannabis-related legitimate business or service provider (as defined in paragraph (38) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)).

.

7.

Assistance from resource partners for cannabis-related legitimate businesses and service providers

(a)

Small business development centers

Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) is amended by adding at the end the following:(9)

Services for cannabis-related legitimate businesses and service providers

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), a small business development center may not decline to provide services to an otherwise eligible small business concern under this section solely because the small business concern is a cannabis-related legitimate business or service provider (as defined in section 7(a)(38))..(b)

Women’s business centers

Section 29 of the Small Business Act (15 U.S.C. 656) is amended by adding at the end the following:(p)

Services for cannabis-Related legitimate businesses and service providers

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), a women’s business center may not decline to provide services to an otherwise eligible small business concern under this section solely because the small business concern is a cannabis-related legitimate business or service provider (as defined in section 7(a)(38))..(c)

SCORE

Section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)) is amended by adding at the end the following: Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), the head of the SCORE program established under this subparagraph may not decline to provide services to an otherwise eligible small business concern solely because the concern is a cannabis-related legitimate business or service provider (as defined in section 7(a)(38))..(d)

Veteran business outreach centers

Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by adding at the end the following:(h)

Services for cannabis-Related legitimate businesses and service providers

Notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), a Veteran Business Outreach Center may not decline to provide services to an otherwise eligible small business concern under this section solely because the small business concern is a cannabis-related legitimate business or service provider (as defined in section 7(a)(38))..

8.

Technical assistance providers

In addition to the programs covered by the amendments made by this Act, and notwithstanding any provision of the Controlled Substances Act (21 U.S.C. 801 et seq.), a provider of financial or technical assistance under a program administered or funded by the Small Business Administration may not decline to provide such financial or technical assistance to an otherwise eligible small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)) solely because the concern is a cannabis-related legitimate business or service provider (as defined in section 7(a)(38) of the Small Business Act (15 U.S.C. 636(a)(38)).

9.

Rulemaking

Not later than 120 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall issue or amend any rules, standard operating procedures, and other legal or policy guidance as necessary to carry out the requirements of this Act and the amendments made by this Act.