After spending last week being criticised for refusing to disperse COVID stimulus funds to cannabis companies, the Business Development Bank of Canada announced it had expanded its range of elligible entities to allow cannabis companies (and bars) access to the Canada Emergency Business Account (CEBA), and the Small and Medium-sized Enterprise (SME) Loan and Guarantee program.
The Star, BDC
- The CEBA offers loans up to $40,000–without interest for the first year–to small businesses who need help with their operating costs.
- SME Loan and Guarantee offers up to $6.25M in credit.
As before, however, the funds are only available to “eligible companies”–and though the BDC has loosened its eligibility requirements, it hasn’t opened them wide.
MJ Biz Daily
- Both programs may only be accessed through banks, which is a significant obstacle, given how few banks are willing to work with cannabis companies.
Twitter–@C0URTLANDS, Global News, Financial Post - The CEBA is only open to companies with payroll expenses for 2019 between $50,000 and $1M.
Twitter–@Spearster55 - Additionally, companies must be able to prove “they would have been able to handle a loan before the coronavirus hit,” while due to federal limits on cannabis possession, LPs may not be able to provide inventory as collateral.
Twitter–@GoBlueCdn, @TrinaFraser
