Bill Overview
Title: Fair Access for Cannabis Small Businesses Act
Description: This bill prohibits the Small Business Administration from declining to provide certain loans or other assistance to an otherwise eligible small business solely because the business is a cannabis-related legitimate business or service provider.
Sponsors: Sen. Rosen, Jacky [D-NV]
Target Audience
Population: People involved with or working for cannabis-related legitimate businesses or service providers
Estimated Size: 5000000
- Cannabis-related legitimate businesses or service providers are directly affected by this bill as they will now have access to Small Business Administration (SBA) loans and assistance which were previously unavailable to them.
- The employees and stakeholders of these cannabis-related businesses and service providers will indirectly benefit from improved business sustainability and potential for growth.
- Investors in the cannabis industry might experience indirect effects due to increased stability and growth prospects in the businesses they are investing in.
- In countries where cannabis is legal, similar businesses might be indirectly impacted due to potential increased competitiveness of US companies.
Reasoning
- The target population includes individuals who own or work for cannabis-related businesses. Given the significant size of this industry, the policy could potentially impact millions of people, but due to the budget constraints, not all will receive direct benefits.
- Most direct impacts will be on business owners who can now access funding, which may lead to improved business operations, growth, and potentially hiring more employees.
- Indirect impacts include those on employees who might benefit from job stability and investors who could see increased business value.
- A minority of the population may not experience any direct effect, particularly those not working in or directly associated with the cannabis industry.
Simulated Interviews
Small business owner (Denver, Colorado)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- This bill is a game-changer for my business. Finally accessing loans could mean expanding my store or perhaps even opening a second location.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Cannabis industry investor (Los Angeles, California)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Access to SBA assistance will make the companies I invest in more stable, potentially higher returns for me in the longer run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 7 |
Cannabis dispensary manager (Seattle, Washington)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- If our business gets a loan, it could mean solidifying my job and even opportunities for promotion as we grow.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Small business consultant (Austin, Texas)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- My clients will benefit from this policy, allowing me to provide better services and strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Marketing specialist (Portland, Oregon)
Age: 32 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- This policy won't affect my day-to-day tasks much, but long-term stability for clients means long-term stability for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Budtender (Chicago, Illinois)
Age: 24 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- It's good news for the company, though for me personally, the change is not immediate.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Cannabis grower (Phoenix, Arizona)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 13/20
Statement of Opinion:
- Finally, I might have the chance to expand our cultivation with the financial backing we need.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Delivery driver (Miami, Florida)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- Access to SBA loans could mean more jobs and more demand, which is good for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Retired (Las Vegas, Nevada)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- I see the potential benefits for today's small business owners, though it doesn't affect me directly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Software developer (Boston, Massachusetts)
Age: 27 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 7/20
Statement of Opinion:
- My work might be indirectly affected if the cannabis sector grows as a result.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $7000000)
Year 2: $6000000 (Low: $5000000, High: $8000000)
Year 3: $7000000 (Low: $6000000, High: $9000000)
Year 5: $8000000 (Low: $7000000, High: $10000000)
Year 10: $10000000 (Low: $9000000, High: $12000000)
Year 100: $20000000 (Low: $15000000, High: $25000000)
Key Considerations
- There is considerable uncertainty in estimating exact costs due to the evolving legal status of cannabis businesses.
- The fluctuating market conditions for cannabis-related businesses could influence the SBA's capacity and demand for loans.
- Fostering a legally compliant cannabis industry might mitigate some enterprise risks, thus stabilizing loan servicing.