House Dems Propose Allowing Banks To Service Cannabis Companies As Part Of Coronavirus Bill

The $3-trillion coronavirus relief bill proposed by House Democrats Tuesday has provisions that should make pot professionals happy.

The financial stimulus package, which is meant to offset small business losses on the heels of the COVID-19 pandemic, includes a safe harbor provision for banks.

In other words, financial lenders, advisors and institutions would be allowed to provide services to cannabis companies in states where the drug is legal.

Today, banks are not allowed to serve the cash-based industry due to federal drug laws, even though cannabis is medically legal in 33 states plus Washington, D.C.

Eleven of those states allow recreational use.

What's In The House Bill 

The provisions may sound familiar. They were part of the Secure And Fair Enforcement Banking Act that was passed by the U.S. House of Representatives in September 2019 only to get stuck in the U.S. Senate.

The marijuana section is just one of many provisions included in the bill, which aims to provide almost $1 trillion in aid for state and local governments. Some $75 billion would be used for virus testing and contract tracing, as well as $200 billion to fund essential workers who risked exposure to the virus as they worked while the country has been — for the most part — shut down.

Among the other measures:

• $1,200 cash payments to individuals
• $1,200 for dependent children — up to $6,000 per household
• A $600 weekly increase to unemployment insurance into next January
• Some $10,000 in payments for student loans per individual through September 2021
• $410 million for the Census to overcome delays

The legislation is expected to be voted on by the House on Friday, according to Bloomberg News.

Whether this bill stands a chance of passing remains to be seen. Republican Senate Majority Leader Mitch McConnell has said he intends to "hit pause" on coronavirus relief funds.