Legislation will boost American businesses, workers, and investors by giving regulated U.S. cannabis companies access to the same financial tools available to their foreign competitors.
Washington – Rep. Guy Reschenthaler (R-PA) and Rep. Troy A. Carter, Sr. (D-LA) have reintroduced the bipartisan Capital Lending and Investment for Marijuana Businesses (CLIMB) Act to give American cannabis companies access to the same critical lending, investment capital, and grant opportunities available to all other companies, including foreign cannabis operators. At a time when America’s regulated cannabis industry employs nearly 450,000 people and generates billions in tax revenue, the CLIMB Act would put American cannabis companies on a level playing field with the competition.
“The CLIMB Act will help unleash the full potential of the American cannabis industry,” said Saphira Galoob, CEO of US Cannabis Roundtable. “Right now, Canadian cannabis companies can ring the bell at U.S. stock markets and access American capital markets while domestic cannabis businesses are largely locked out of even the most basic financial services. That’s not a level playing field. The CLIMB Act fixes this by ensuring American cannabis businesses, workers, and investors have the same opportunities and access to financial services as foreign competitors.”
The American cannabis industry has been one of the fastest-growing sectors of the U.S. economy over the past decade. Yet due to federal cannabis prohibition, regulated U.S. cannabis operators are denied access to essential financial tools available to virtually all other businesses. For instance, Canadian cannabis companies regularly tap American investment capital and trade on U.S. stock exchanges, while American businesses are banned from those exchanges and public capital markets.
The CLIMB Act puts American businesses and workers on the same footing as everyone else by doing the following:
- Expands Access to Private Capital for Cannabis Entrepreneurs and Small Businesses: The CLIMB Act ensures that sources of capital both public and private — including venture capital, private equity, institutional funds, and other investment vehicles — are not restricted solely because a business participates in one or more regulated state cannabis markets.
- Protects Ancillary Service Providers: The CLIMB Act protects businesses and professionals providing services to regulated cannabis companies from criminal, administrative, or regulatory penalties, including attorneys, accountants, property management companies, contractors, and more.
- Creates Access to U.S. Senior Exchanges for American Cannabis Companies: U.S. cannabis businesses are currently prohibited from listing on American stock exchanges, while foreign cannabis companies are permitted to do so freely, giving them a significant and growing economic advantage over their American counterparts.
Research has shown that the CLIMB Act would have an immediate and substantial impact on America’s regulated cannabis industry, which currently generates over $30 billion in revenue. The bill would support the growth and stability of the industry and generate substantial increases in employment and tax revenue.
Read more from Rep. Carter on the bill’s release here.
The full text of the bill can be found here.