I 
116TH CONGRESS 
1ST SESSION H. R. 3540 
To 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. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 27, 2019 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the Com-
mittee on Small Business, and in addition to the Committees on Energy 
and Commerce, Natural Resources, Agriculture, and the Judiciary, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Ensuring Safe Capital 
Access for All Small Businesses Act of 2019’’. 
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SEC. 2. DECRIMINALIZATION OF CANNABIS. 
(a) CANNABIS REMOVED FROM SCHEDULE OF CON-
TROLLED SUBSTANCES.—Subsection (c) of schedule I of 
section 202(c) of the Controlled Substances Act (21 
U.S.C. 812) is amended— 
(1) by striking ‘‘Marihuana’’; and 
(2) by striking ‘‘Tetrahydrocannabinols’’ 
and renumbering accordingly. 
(b) CONFORMING AMENDMENTS
TO CONTROLLED 
SUBSTANCES ACT.—The Controlled Substances Act (21 
U.S.C. 801 et seq.) is amended— 
(1) in section 102(44) (21 U.S.C. 802(44)), by 
striking ‘‘marihuana,’’; 
(2) in section 401(b) (21 U.S.C. 841(b))— 
(A) in paragraph (1)— 
(i) in subparagraph (A)— 
(I) in clause (vi), by inserting 
‘‘or’’ after the semicolon; 
(II) by striking (vii); and 
(III) 
by 
redesignating 
clause 
(viii) as clause (vii); 
(ii) in subparagraph (B)— 
(I) in clause (vi), by inserting 
‘‘or’’ after the semicolon; 
(II) by striking clause (vii); and 
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(III) 
by 
redesignating 
clause 
(viii) as clause (vii); 
(iii) in subparagraph (C), in the first 
sentence, by striking ‘‘subparagraphs (A), 
(B), and (D)’’ and inserting ‘‘subpara-
graphs (A) and (B)’’; 
(iv) by striking subparagraph (D); 
(v) by redesignating subparagraph (E) 
as subparagraph (D); and 
(vi) in subparagraph (D)(i), as so re-
designated, by striking ‘‘subparagraphs (C) 
and (D)’’ and inserting ‘‘subparagraph 
(C)’’; 
(B) by striking paragraph (4); and 
(C) by redesignating paragraphs (5), (6), 
and (7) as paragraphs (4), (5), and (6), respec-
tively; 
(3) 
in 
section 
402(c)(2)(B) 
(21 
U.S.C. 
842(c)(2)(B)), by striking ‘‘marihuana,’’; 
(4) in section 403(d)(1) (21 U.S.C. 843(d)(1)), 
by striking ‘‘marihuana,’’; 
(5) in section 418(a) (21 U.S.C. 859(a)), by 
striking the last sentence; 
(6) in section 419(a) (21 U.S.C. 860(a)), by 
striking the last sentence; 
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(7) in section 422(d) (21 U.S.C. 863(d))— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘marijuana,’’; and 
(B) in paragraph (5), by striking ‘‘, such 
as a marihuana cigarette,’’; and 
(8) in section 516(d) (21 U.S.C. 886(d)), by 
striking ‘‘section 401(b)(6)’’ each place the term ap-
pears and inserting ‘‘section 401(b)(5)’’. 
(c) OTHER CONFORMING AMENDMENTS.— 
(1) NATIONAL FOREST SYSTEM DRUG CONTROL 
ACT OF 1986.—The National Forest System Drug 
Control Act of 1986 (16 U.S.C. 559b et seq.) is 
amended— 
(A) in section 15002(a) (16 U.S.C. 
559b(a)) by striking ‘‘marijuana and other’’; 
(B) in section 15003(2) (16 U.S.C. 
559c(2)) by striking ‘‘marijuana and other’’; 
and 
(C) in section 15004(2) (16 U.S.C. 
559d(2)) by striking ‘‘marijuana and other’’. 
(2) INTERCEPTION OF COMMUNICATIONS.—Sec-
tion 2516 of title 18, United States Code, is amend-
ed— 
(A) in subsection (1)(e), by striking ‘‘, 
marihuana,’’; and 
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(B) in subsection (2) by striking ‘‘mari-
huana’’. 
SEC. 3. 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 
new paragraph: 
‘‘(36) LOANS
TO
CANNABIS-RELATED
LEGITI-
MATE BUSINESSES AND SERVICE PROVIDERS.— 
‘‘(A) IN
GENERAL.—The Administrator 
may not decline to provide a guarantee for a 
loan under this subsection to an otherwise eligi-
ble small business concern solely because such 
concern is a cannabis-related legitimate busi-
ness or service provider. 
‘‘(B) DEFINITIONS.—In this paragraph: 
‘‘(i) CANNABIS.—The term ‘cannabis’ 
has the meaning given the term ‘mari-
huana’ in section 102 of the Controlled 
Substances Act. 
‘‘(ii) CANNABIS PRODUCT.—The term 
‘cannabis product’ means any article which 
contains cannabis, including an article 
which is a concentrate, an edible, a tinc-
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ture, a cannabis-infused product, or a top-
ical. 
‘‘(iii) 
CANNABIS-RELATED
LEGITI-
MATE BUSINESS.—The term ‘cannabis-re-
lated legitimate business’ means a manu-
facturer, producer, or any person or com-
pany that is a small business concern and 
that— 
‘‘(I) engages in any activity de-
scribed in subclause (II) pursuant to 
a law established by a State or a po-
litical subdivision of a State, as deter-
mined by such State or political sub-
division; and 
‘‘(II) participates in any business 
or organized activity that involves 
handling cannabis or cannabis prod-
ucts, including cultivating, producing, 
manufacturing, selling, transporting, 
displaying, dispensing, distributing, or 
purchasing cannabis or cannabis prod-
ucts. 
‘‘(iv) 
MANUFACTURER.—The 
term 
‘manufacturer’ means a person who manu-
factures, compounds, converts, processes, 
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prepares, or packages cannabis or cannabis 
products. 
‘‘(v) PRODUCER.—The term ‘pro-
ducer’ means a person who plants, cul-
tivates, harvests, or in any way facilitates 
the natural growth of cannabis. 
‘‘(vi) SERVICE PROVIDER.—The term 
‘service provider’— 
‘‘(I) means a business, organiza-
tion, 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 prop-
erty, legal or other licensed serv-
ices, or any other ancillary serv-
ice, relating to cannabis; and 
‘‘(II) does not include a business, 
organization, or other person that 
participates in any business or orga-
nized activity that involves handling 
cannabis or cannabis products, includ-
ing cultivating, producing, manufac-
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turing, 
selling, 
transporting, 
dis-
playing, dispensing, distributing, or 
purchasing cannabis or cannabis prod-
ucts. 
‘‘(vii) 
STATE.—The 
term 
‘State’ 
means each of the several States, the Dis-
trict of Columbia, Puerto Rico, and any 
territory or possession of the United 
States.’’. 
SEC. 4. DISASTER LOANS TO CANNABIS-RELATED LEGITI-
MATE 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 new paragraph: 
‘‘(16) ASSISTANCE TO CANNABIS-RELATED LE-
GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 
The Administrator may not decline to provide assist-
ance under this subsection to an otherwise eligible 
borrower solely because such borrower is a cannabis- 
related legitimate business or service provider (as 
defined in subsection (a)(36)).’’. 
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SEC. 5. 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 fol-
lowing new paragraph: 
‘‘(14) ASSISTANCE TO CANNABIS-RELATED LE-
GITIMATE BUSINESSES AND SERVICE PROVIDERS.— 
An eligible intermediary may not decline to provide 
assistance under this subsection to an otherwise eli-
gible borrower solely because such borrower is a can-
nabis-related legitimate business or service provider 
(as defined in subsection (a)(36)).’’. 
SEC. 6. STATE OR LOCAL DEVELOPMENT COMPANY LOANS 
TO CANNABIS-RELATED LEGITIMATE BUSI-
NESSES 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 new section: 
‘‘SEC. 511. LOANS TO CANNABIS-RELATED LEGITIMATE 
BUSINESSES AND SERVICE PROVIDERS. 
‘‘The Administrator may not decline to provide a 
guarantee for a loan under this title to an otherwise eligi-
ble State or local development company solely because 
such State or local development company provides financ-
ing to an entity that is a cannabis-related legitimate busi-
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ness or service provider (as defined in section 7(a)(36) of 
the Small Business Act).’’. 
SEC. 7. RULEMAKING. 
Not later than 120 days after the date of the enact-
ment of this Act, the Administrator of the Small Business 
Administration shall issue or amend any rules, standard 
operating procedures, other legal or policy guidance nec-
essary to carry out the requirements of this Act and the 
amendments made by this Act. 
Æ 
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