Hemp Business/Farm PPP Application Tools
Updated 4/17/2020-
As many of you have heard the first round of SBA Covid-19 Relief Funding through the CARES act has been exhausted. However, we are hearing from our contacts at the Colorado SBA that they are encouraging businesses/farms to identify a bank that will be willing to work with them if additional funds become available. Some lenders are still taking applications with the expectation more funds will be allocated.
Original post-
Although many hemp farms & companies are receiving funding, we have heard troubling reports that some businesses who are applying for PPP loans through their banks are being denied. We want you to know that we are working very hard on this issue with Governor Polis and our Colorado Delegation being led by Senators Michael Bennet and Cory Gardner and the Colorado Small Business Administration to address the problems and fix them. A lot of the problems we find may be due to a lack of education or clarity on behalf of the banks and so we want to guide you through steps you can take with your lenders.
First, when communicating with your lender, be sure to include the following information:
Per SBA Policy Notice 5000- 17057 in 2019, SBA revised their policies regarding hemp businesses to be “consistent with the Agriculture Improvement Act of 2018, revised guidance regarding the eligibility of hemp-related businesses to state that a business that grows, produces, processes, distributes or sells products made from hemp (as defined in section 297A of the Agricultural Marketing Act of 1946) is eligible.”
- Colorado SBA has also designated: Jonothan Braun at the SBA Colorado District Office (303-844-2607) can answer lending institution questions regarding hemp and CBD eligibility.
- If you are a processor it is useful to note that in 2018 Colorado deemed all hemp derived cannabinoid products to be “food products” and regulated by the CDPHE. Then provide them with your CDPHE registration or wholesale food license.
It is also helpful to work with a bank that you have a prior or current financial relationship with.
Farm Bureau Bank is accepting applications for existing and new members for stimulus funds as a SBA lender. If you are interested in applying for a Paycheck Protection Program or Economic Injury Disaster Loan
If you are still being denied after using this guidance, then please get in writing from the bank the reason they are denying your application and document any other relevant information, which bank denied you and are they located in Colorado et cetera.
Then contact us via info@thecohia.org.
Then contact us via info@thecohia.org.
Through this process we are collecting as much information as possible to identify the roadblocks so we can address them through Congress or the State.
