Canadian marijuana companies are confirmed as eligible for financial assistance during the coronavirus crisis
Last month, the Export Development Canada (EDC) agency and the Business Development Bank of Canada (BDC) were granted CAD$10 billion to distribute in the form of loans to small businesses as part of the Canadian government’s emergency stimulus package.
However, the CEO of cannabis producer Tantalus Labs informed people via Twitter that he was denied help as the federal development bank is “not authorized to do business” with marijuana companies.
Now, the BDC has clarified that all legal businesses will be eligible for the loans that could help companies stay afloat amid the coronavirus economic turmoil – a decision in line with Prime Minister Justin Trudeau’s comments that the government is seeking to help out Canadians “across the country, regardless of the sectors they’re in, regardless of their situation or their location.”
In response to the crisis, the Canadian federal government also unveiled a wage subsidy program that would cover 75% of employee salaries for three months depending on the amount of revenue lost during March, April or May.
Most Canadian provinces have classified cannabis dispensaries as essential businesses that may remain open during partial lockdowns enforced in the country, with the notable exception of Ontario – the country’s most populous province.
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