Highlights from the 504 Program on Marijuana Businesses
SBA’s additional guidance to address businesses that derive revenue from marijuana-related activities or support the end-use of marijuana.
Because Federal Law prohibits the distribution and sale of marijuana, financial transactions involving a marijuana-related business would generally involve funds derived from illegal activity. Therefore, businesses may be ineligible for SBA financial assistance.
The following businesses are ineligible:
Direct Marijuana Businesses:
A business that grows, produces, processes, distributes or sells marijuana or marijuana products, edibles, or derivatives, regardless of the amount of such activity. This applies to personal and medical use even if the business is legal under local or state law.
Indirect Marijuana Businesses:
A business that derived any of its gross revenue for the previous year from sales to Direct Marijuana Businesses of products or services that could reasonably be determined to support the use, growth, enhancement or other development of marijuana. (Examples: businesses that provide testing services or sell grow lights/hydroponic equipment to one or more Direct Marijuana Business. Businesses that sell smoking devices, pipes, bongs, inhalants or other products that may be used in connection with marijuana are ineligible if the products are primarily intended/designed for such use or if the business markets the products for such use.)
A business that grows, produces, processes, distributes or sells products purportedly made from “hemp” is ineligible unless the business can prove that its activities/products are legal under federal and state law. (Examples of legal hemp products include paper, clothing and rope)
SBA 504 Effective Rates for April 2018
20-year – 5.03% / 5.08% Refi
10-year – 5.11% / 5.13% Refi
SBA has reached $75 Billion in small business funding!
Congratulations to NWBDA borrower, Danny House, owner of Dan the Sausageman, for being voted “Washington’s Small Business Person of the Year”!
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In the month of
March, NWBDA helped
create 25 new jobs in the
NWBDA approved 6 new projects for the total amount of $5,234,000.00
Did you know?
In the U.S., there are 5 Million people employed by veteran-owned businesses.