Pot Sector Cut Off From Federal Pandemic Loans, Turns to States

Cannabis companies struggling with slowing business don’t qualify for relief under the $349 billion federal small business lending program and instead are looking to states for help.

Cannabis products flew off the shelves when social distancing measures were first announced a few weeks ago in an effort to curb the spread of the coronavirus. But now, business has slowed for many dispensaries.

The industry has always struggled to obtain loans and banking services from traditional financial institutions. It now faces new hardships during the pandemic, said Amber Littlejohn, senior policy adviser for the Minority Cannabis Business Association.

“We’re getting the ...