Biden-Harris Administration Move to Reschedule Cannabis is Promising for Entrepreneurship
Statement from John Arensmeyer, Small Business Majority Founder & CEO, on the significance of federal cannabis rescheduling for small businesses
“We’re encouraged by the Biden-Harris Administration’s decision to reschedule cannabis because we expect it will lower barriers to small business ownership in the United States, particularly for people of color. Research has found that a robust 19% of entrepreneurs who started and/or own a cannabis business are racial minorities.
The biggest immediate benefit to cannabis rescheduling is that marijuana businesses in states where marijuana is already legal will be able to take tax deductions. Without substantial banking reform, however, capital problems remain. It’s currently illegal for lenders to offer capital to companies that sell marijuana, even if the industry is legal in the state where the business operates, meaning that any investment in those companies must come in the form of cash. As a result, difficulty obtaining funds is the biggest barrier to entry for most aspiring cannabis entrepreneurs. Going forward, we urge Congress and the administration to work toward easing federal lending restrictions for cannabis businesses as part of the rescheduling and decriminalization process.”
About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.
