october 28, 2020
october 22, 2020
October 19, 2020
october 15, 2020
october 12, 2020
october 8, 2020
october 5, 2020
september 22, 2020
september 21, 2020
September 11, 2020
august 4, 2020
july 6, 2020
july 1, 2020
- PPP Loan Deadline May Be Extended as SBA Issues New Rules Relating to Loan Forgiveness and Eligibility
- California Looks to Pass Legislation Concerning Business Interruption Coverage Due to COVID-19
June 29, 2020
June 22, 2020
- PPP Loan Forgiveness Application Forms Updated and Streamlined
- Nevada Division of Insurance to Disallow Policy Exclusions Related to COVID-19
- CDI Announces New Order Regarding Workers’ Compensation Premium Savings for CA Businesses Affected by COVID-19
june 15, 2020
june 10, 2020
- Note to the SBA: Debtors in Bankruptcy Are Eligible for PPP Loans
- California Modifies the Tolling of Statutes of Limitations in Civil Cases
june 8, 2020
June 4, 2020
may 29, 2020
may 28, 2020
may 27, 2020
- Hoteliers Beware: a Return to Business Post-Pandemic Brings With It Potential Legal Liability
- House Contemplates Revisions to the Paycheck Protection Program
may 15, 2020
may 14, 2020
- U.S. House Democrats Introduce HEROES Act, a New $3T Stimulus Package
- SAFE Banking Act for Cannabis-Related Businesses Included in the HEROES Act
may 12, 2020
may 8, 2020
- Treasury and the SBA Issue Guidance Regarding the Employee Retention Credit
- Businesses Reopen in Los Angeles County as Stage 2 of California’s Statewide Plan Begins
- Update: Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. County Ordinance
may 6, 2020
- SBA Extends PPP Certification Safe Harbor to May 14
- EPLI Insurance and Employee Benefits in the Age of the Coronavirus
may 5, 2020
- Update: PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
- NAIC Issues Business Interruption Data Call in the Wake of COVID-19
may 4, 2020
may 1, 2020
april 29, 2020
- Planning for Your Employees' Return to the Workplace
- Los Angeles Hospitality Workers Among Those Thrown a Potential Lifeline
april 24, 2020
- Attention Cannabis Businesses: Hope May Be on the Horizon for Federal COVID-19-Related Relief
- California Department of Insurance Issues Notice Granting Tax-Filing Extension in Response to COVID-19
- SEC Approves Amendments to Nasdaq and NYSE Continued Listing Requirements Due to the COVID-19 Pandemic
April 23, 2020
april 21, 2020
- Additional Funding Is on the Way to Resurrect the PPP
- Certifying Your PPP Loan: Proceed With Caution
april 17, 2020
april 16, 2020
- Employment in the Wake of Coronavirus: EEOC and OSHA Guidance Allows Employers to Go Where They Could Not Go Before
- New Yorkers Ordered to Stay at Home Even Longer Amid the COVID-19 Crisis
- Paycheck Protection Program Funds Exhausted
april 15, 2020
April 14, 2020
- Insurance Companies Have Been Ordered to Provide COVID-19-Related Premium Relief to Businesses and Drivers in California
- What to Do If Your New York Business Has Been Deemed Non-Essential
APRIL 13, 2020
- IP Deadlines and Fees Extended Under the CARES Act
- Employment in the Wake of Coronavirus: Reintegrating Your Workforce in the New Normal
APRIL 10, 2020
- You Successfully Applied for and Received a PPP Loan Under the CARES Act: Now What?
- Safer at Home Order in L.A. Extended to May 15
- Maintaining Your Trade Secrets During the Coronavirus Crisis
APRIL 9, 2020
april 8, 2020
- Congress Looks to Bolster the PPP With Another $250B in Funding
- U.S. Treasury Provides Further Guidance to PPP Borrowers and Lenders
- L.A. Mayor Amends COVID-19-Related Paid Sick Leave Ordinance
april 7, 2020
April 3, 2020
april 2, 2020
april 1, 2020
March 31, 2020
march 30, 2020
- Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. Ordinance
- Insurance Coverage Potentially Triggered by COVID-19
- Attention Insurers: CDI Orders Mandatory Call for Business Interruption Coverage Information in the Wake of COVID-19
- DOL Is Requiring Employers to Post Families First Employee Rights Notice
March 27, 2020
- A Comprehensive Guide to Understanding Coronavirus-Related State Assistance Programs: Who is Giving What to Whom (Part II)
- HHS Relaxing Enforcement of HIPAA to Facilitate Sharing of Information During the COVID-19 Crisis
March 26, 2020
march 25, 2020
march 24, 2020
- Navigating the Coronavirus Pandemic: a Critical Business Review Checklist
- SBA Loans for Companies Impacted by Coronavirus
- SEC Relaxes Federal Proxy Rules for Annual Meetings
march 23, 2020
- Federal Reserve Responds Boldly to Coronavirus-Related Economic Downturn
- The Number of Jurisdictions Implementing Stay-at-Home Orders Is Increasing Exponentially
- Michelman & Robinson’s Guide to Coronavirus-Related Paid Sick Leave and Unemployment Insurance Laws in the Tri-State Area
MARCH 21, 2020
MARCH 20, 2020
- New York Governor’s PAUSE Order
- Illinois Governor’s Statewide Stay-at-Home Order
- Force Majeure Clauses in Commercial Real Estate Contracts
MARCH 19, 2020
- SEC Provides Regulatory Relief for Public Reporting Companies
- Student Loan Borrowers Can Breathe a Sigh of Relief, At Least Temporarily
- California Governor's Statewide Stay-At-Home Order
MARCH 18, 2020
- "Shelter in Place" Orders
- Telecommuting in the Age of Coronavirus
- Families First Coronavirus Response Act Just Passed by the Senate and Signed Into Law by the President
MARCH 17, 2020
MARCH 16, 2020
MARCH 5, 2020
Attention Cannabis Businesses: Hope May Be on the Horizon for Federal COVID-19-Related Relief
BRYAN JOHNSON, SAMUEL LICKER
APRIL 24, 2020
As Michelman & Robinson previously reported, the lending programs authorized under the CARES Act cannot be accessed by legal cannabis businesses and certain companies indirectly related to the industry. Consequently, players in the legal cannabis space have been beholden to the states for any and all assistance in the wake of the coronavirus pandemic, including the ability to remain open for business in some jurisdictions despite the issuance of stay-at-home and similar orders.
Notwithstanding the foregoing, good news at the federal level may be coming to the legal cannabis sector, with the introduction of the Emergency Cannabis Small Business Health and Safety Act (Cannabis Act). If passed and signed into law, this legislation—introduced by Representatives Earl Blumenauer (D-OR) and Ed Perlmutter (D-CO)—would allow legal cannabis businesses to obtain much-needed federal assistance, as explained by M&R.
Q. What is the main objective of the Cannabis Act?
A. Simply stated, the purpose of the Cannabis Act is to ensure that legal cannabis operations and their respective service providers can avail themselves of federal funding made available as a result of the COVID-19 crisis. Toward that end, the legislation states that such businesses can be eligible for assistance under (1) the Paycheck Protection Program, (2) Economic Injury Disaster Loans (EIDL), and (3) emergency grants under the CARES Act.
Q. Does the Cannabis Act provide for a new source of funding for legal cannabis-related businesses?
A. No, the legislation does not create a new loan or grant pool. Instead, the Cannabis Act, as written, mandates that legal cannabis businesses and their service providers be allowed to participate in current funding opportunities under the Small Business and CARES Acts (e.g., PPP, EIDL, etc.).
Q. How can the Cannabis Act allow for funding to legal cannabis businesses when the use or distribution of marijuana is still illegal under federal law?
A. The legislation gets around this sticking point two ways: (1) by exempting the SBA and its officers, directors, and employees from civil or criminal liability pursuant to applicable federal laws or regulations (e.g., the Controlled Substances Act and the like) in connection with any COVID-19-related loans or loan guarantees made to legitimate cannabis businesses or their service providers; and (2) by specifying that the mere participation in a legal cannabis operation will not, on its face, exclude such a business from federal assistance under the Small Business and CARES Acts.
Q. Why is it so important to provide federal assistance to legal cannabis businesses feeling the pain inflicted by the coronavirus outbreak?
A. The legal cannabis sector has created nearly a quarter million jobs, and many of those employees now depends on financial aid—in the form of loans and grants to their employers—in order to keep them working. And while some legal cannabis businesses have been deemed “essential”—and therefore remain open—in some states, these operators are nevertheless stung by the economic consequences of COVID-19. Social distancing requirements that limit in-store traffic, supply chain disruptions, and the overall economic downturn caused by the coronavirus all serve to severely impact their bottom lines.
In the meantime, it costs more to operate in the legal cannabis space. The entire industry is faced with higher federal taxation—this because legal cannabis businesses cannot take advantage of ordinary tax deductions available to other non-cannabis-related companies—yet they must still comply with pandemic-related governmental orders that all businesses now face, including the requirement to provide employees with paid sick leave. As such, all of the same operational standards apply to legal cannabis companies, though they (as of now) are not receiving any of the federal assistance afforded to more mainstream establishments. The Cannabis Act seeks to remedy this disparity, at least in part.
We are working diligently to keep our clients up to date on coronavirus-related developments. Nevertheless, these developments are changing daily and, in some cases even hourly, so it is important that you make sure you are dealing with the most current information. That being said, this alert is not offered, and should not be relied on, as legal advice. You should consult an attorney for guidance and counsel regarding any specific concern or situation.