Fair Access for Cannabis Small Businesses Act

Bill: 117-s-5131
Sponsor: full_name: Sen. Rosen, Jacky [D-NV]
Introduced: 2022-11-17
Policy area: Commerce
Latest action: action_date: 2022-11-17
text: Read twice and referred to the Committee on Small Business and Entrepreneurship.

Summaries:
action_date: 2022-11-17
action_desc: Introduced in Senate
text: <p><b>Fair Access for Cannabis Small Businesses Act</b></p> <p>This bill prohibits the Small Business Administration from declining to provide certain loans or other assistance to an otherwise eligible small business solely because the business is a cannabis-related legitimate business or service provider.</p>

tv_txt: II 117th CONGRESS 2d Session S. 5131 IN THE SENATE OF THE UNITED STATES November 17, 2022 Ms. Rosen introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship 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.

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.