National Cannabis Roundtable Applauds Introduction of The CLIMB Act
Legislation will “unleash the full potential of the American cannabis industry” by giving cannabis businesses access to a broad range of economic opportunities.
Washington, DC – Today, Rep. Troy A Carter, Sr. (LA-02) and Rep. Guy Reschenthaler (PA-14) introduced bipartisan legislation, The Capital Lending and Investment for Marijuana Businesses (CLIMB) Act. This legislation would give state legal American cannabis companies the ability to access critical lending and grant opportunities from both financial institutions and government agencies, while also allowing American cannabis businesses to list on U.S. exchanges.
“The CLIMB Act will unleash the full potential of the American cannabis industry. This legislation will ensure that American cannabis businesses can access the lending and grant opportunities that other domestic industries currently enjoy, and it will make it easier for veteran, minority and women-owned businesses to compete by giving them access to a broad range of economic opportunities,” said Dr. Chanda Macias, First Vice Chair of the National Cannabis Roundtable and CEO of Ilera Holistic. “I want to thank Congressmen Troy Carter and Guy Reschenthaler for introducing this important legislation.”
The American cannabis industry has been the fastest growing sector over the past decade. However, due to federal cannabis prohibition, state legal cannabis operators do not have access to traditional business lending and financing options. This creates significant barriers to entry for American cannabis companies, including veteran, minority and women-owned businesses, who find themselves unable to access much-needed capital. Federal prohibition also currently prevents American cannabis businesses from listing on U.S. exchanges. However, foreign cannabis businesses are able to do so, which puts American cannabis businesses at a significant disadvantage.
The Capital Lending and Investment for Marijuana Businesses (CLIMB) Act addresses these issues:
- Opens up public and private funding to state legal American cannabis businesses.
- Protects government agencies such as Community Development Financial Institutions (CDFI) and the Minority Business Development Association (MBDA), allowing them to issue grants and other sources of government funding to state legal cannabis companies.
- Allows state legal American cannabis companies to list on U.S. exchanges. Global companies are currently permitted to list, giving them an unfair advantage over American cannabis businesses to secure critical capital.
Research has shown that the CLIMB Act would have an immediate impact on America’s cannabis industry, ushering in an expected $47.3 billion in investments to support the growth and stability of U.S. cannabis operators and ancillary businesses in Year one. The CLIMB Act is also projected to create 600,000 jobs by giving state legal American cannabis businesses access to capital and generate $22.7 billion in tax revenue through increased investment.
Dr. Chanda Macias is the First Vice Chair of the National Cannabis Roundtable and CEO of Ilera Holistic. She is one of the first African American women to attain a commercial cannabis license.
Read more from Congressman Carter on this bill’s release here.
And the full text of the bill can be found here.
Will@merakicommsgroup.com; (518) 338-7119