1. Short title
This Act may be cited as the “Ensuring Safe Capital Access for All Small Businesses Act of 2019”.
Ensuring Safe Capital Access for All Small Businesses Act of 2019
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.
2. Decriminalization of cannabis
Cannabis removed from schedule of controlled substances— Subsection (c) of schedule I of section 202(c) of the Controlled Substances Act (21 U.S.C. 812) is amended—
by striking “Marihuana”; and
by striking “Tetrahydrocannabinols”
Conforming amendments to Controlled Substances Act— The Controlled Substances Act (21 U.S.C. 801 et seq.) is amended—
in section 102(44) (21 U.S.C. 802(44)), by striking “marihuana,”;
in section 401(b) (21 U.S.C. 841(b))—
in paragraph (1)—
in subparagraph (A)—
in clause (vi), by inserting “or” after the semicolon;
by striking (vii); and
by redesignating clause (viii) as clause (vii);
in subparagraph (B)—
in clause (vi), by inserting “or” after the semicolon;
by striking clause (vii); and
by redesignating clause (viii) as clause (vii);
in subparagraph (C), in the first sentence, by striking “subparagraphs (A), (B), and (D)” and inserting “subparagraphs (A) and (B)”;
by striking subparagraph (D);
by redesignating subparagraph (E) as subparagraph (D); and
in subparagraph (D)(i), as so redesignated, by striking “subparagraphs (C) and (D)” and inserting “subparagraph (C)”;
by striking paragraph (4); and
by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively;
in section 402(c)(2)(B) (21 U.S.C. 842(c)(2)(B)), by striking “marihuana,”;
in section 403(d)(1) (21 U.S.C. 843(d)(1)), by striking “marihuana,”;
in section 418(a) (21 U.S.C. 859(a)), by striking the last sentence;
in section 419(a) (21 U.S.C. 860(a)), by striking the last sentence;
in section 422(d) (21 U.S.C. 863(d))—
in the matter preceding paragraph (1), by striking “marijuana,”; and
in paragraph (5), by striking “, such as a marihuana cigarette,”; and
in section 516(d) (21 U.S.C. 886(d)), by striking “section 401(b)(6)” each place the term appears and inserting “section 401(b)(5)”.
Other conforming amendments—
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—
in section 15002(a) (16 U.S.C. 559b(a)) by striking “marijuana and other”;
in section 15003(2) (16 U.S.C. 559c(2)) by striking “marijuana and other”; and
in section 15004(2) (16 U.S.C. 559d(2)) by striking “marijuana and other”.
Interception of communications— Section 2516 of title 18, United States Code, is amended—
in subsection (1)(e), by striking “, marihuana,”; and
in subsection (2) by striking “marihuana”.
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 legitimate 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 eligible small business concern solely because such concern is a cannabis-related legitimate business or service provider.
“(B) Definitions—In this paragraph:
“(i) Cannabis—The term cannabis has the meaning given the term marihuana 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 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 such 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.”
4. 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 new paragraph:
“(16) Assistance to cannabis-related legitimate businesses and service providers—The Administrator may not decline to provide assistance 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)).”
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 following new paragraph:
“(14) Assistance to cannabis-related legitimate businesses and service providers—An eligible intermediary may not decline to provide assistance 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)).”
6. State or local development company loans to 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 new section:
“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 eligible State or local development company solely because such State or local development company provides financing to an entity that is a cannabis-related legitimate business or service provider (as defined in section 7(a)(36) of the Small Business Act).”
7. Rulemaking
Not later than 120 days after the date of the enactment of this Act, the Administrator of the Small Business Administration shall issue or amend any rules, standard operating procedures, other legal or policy guidance necessary to carry out the requirements of this Act and the amendments made by this Act.