Trump Administration Has Calm Response To Canadian Marijuana Legalization

Trump Administration Has Calm Response To Canadian Marijuana Legalization

Canada’s new marijuana legalization law went into effect on Wednesday, and the U.S. federal government’s response so far has been mostly muted and dispassionate.

The U.S. Embassy in Ottawa, for example, posted a few calm and friendly videos simply reminding people not to bring cannabis with them when crossing the border.

https://www.youtube.com/watch?v=5dop_b709PA

The Embassy also launched a frequently asked questions page, which responds to queries about how consuming marijuana or investing or working in the cannabis industry could impact admissibility to the U.S.

Perhaps of most interest to Canadians involved in cannabis businesses, the document reiterates and confirms that “a Canadian citizen working in or facilitating the proliferation of the legal marijuana industry in Canada, coming to the United States for reasons unrelated to the marijuana industry will generally be admissible to the United States.”

“However, if a traveler is found to be coming to the United States for reasons related to the marijuana industry, they may be deemed inadmissible,” it says.

While one of the questions—”Do you anticipate more American tourists crossing into Canada due to the change in legalization?—seems to acknowledge that many U.S. citizens support and would like to take advantage of Canada’s new marijuana laws, the Embassy doesn’t really provide a direct response.

The FAQ also covers issues related to visa applications.

“If you plan to use marijuana in the United States then you will be found ineligible for a visa based on intending to engage in unlawful activity in the United States,” it says. “It does not matter if you use doctor-prescribed marijuana. If you smoke cannabis in Canada, you may also be found ineligible…if a physician determines that you have a physical or mental disorder with associated harmful behavior – for example, impaired driving – or are a drug abuser or addict.”

When it comes to working or investing in the marijuana industry, the Embassy says it will only affect visas if the person is “found to be coming to the U.S. for reasons related to the cannabis industry.”

The page also says that while “legalization of cannabis in Canada will not have any impact on cannabis’s legality in the United States,” American officials “have discussed legalization of cannabis at various levels” with their Canadian counterparts.

Despite the relatively polite and level-headed response to the new legalization law of its neighbor to the north, the American government isn’t exactly excited about it.

A top U.S. Customs and Border Protection official, for example, said that Canada’s move to grant pardons for past marijuana offenses wouldn’t necessarily shield those individuals from being denied entry into the U.S.

It remains to be seen how President Trump himself, key White House staffers or Department of Justice officials will respond to Canada’s legalization of marijuana if asked about it publicly.

Marijuana Stores Will Be Hard To Find For Most Canadians On Day One Of Legalization

See the original article published on Marijuana Moment below:

Trump Administration Has Calm Response To Canadian Marijuana Legalization

Marijuana Industry Not Eligible For Business Loans, Trump Administration Says

Marijuana Industry Not Eligible For Business Loans, Trump Administration Says

The U.S. Small Business Administration issued guidance earlier this month clarifying that marijuana businesses — and even some firms that don’t touch the plant but serve those in the cannabis industry — cannot receive aid in the form of federally backed loans.

“Because federal law prohibits the distribution and sale of marijuana, financial transactions involving a marijuana-related business would generally involve funds derived from illegal activity,” the new memo says. “Therefore, businesses that derive revenue from marijuana-related activities or that support the end-use of marijuana may be ineligible for SBA financial assistance.”

The new document details the type of marijuana-related businesses that it says are “ineligible” to participate in the agency’s loan programs:

(a) “Direct Marijuana Business” — a business that grows, produces, processes, distributes, or sells marijuana or marijuana products, edibles, or derivatives, regardless of the amount of such activity. This applies to personal use and medical use even if the business is legal under local or state law where the applicant business is or will be located.

(b) “Indirect Marijuana Business” — a business that derived any of its gross revenue for the previous year (or, if a start-up, projects to derive any of its gross revenue for the next year) from sales to Direct Marijuana Businesses of products or services that could reasonably be determined to support the use, growth, enhancement or other development of marijuana. Examples include businesses that provide testing services, or sell grow lights or hydroponic equipment, to one or more Direct Marijuana Businesses. In addition, businesses that sell smoking devices, pipes, bongs, inhalants, or other products that may be used in connection with marijuana are ineligible if the products are primarily intended or designed for such use or if the business markets the products for such use.

(c) Hemp-Related Business” — a business that grows, produces, processes, distributes or sells products purportedly made from “hemp” is ineligible unless the business can demonstrate that its business activities and products are legal under federal and state law. Examples of legal hemp products include paper, clothing and rope.

The new memo, issued by SBA Administrator Linda E. McMahon, is intended to provide clarification on a longer document laying out rules for loan programs that SBA issued earlier this year.

The policy document also specifies that SBA borrowers can’t rent office space to marijuana-related businesses.

“For consistency with the changes identified above regarding marijuana-related businesses, Lenders are advised that, during the life of the SBA-guaranteed loan, a borrower may not lease space to the ineligible businesses described above because the collateral could be subject to seizure and because payments on the SBA loan would be derived from illegal activity,” McMahon wrote. “If a borrower does lease to an ineligible marijuana-related business, SBA District Counsel should be consulted to determine what action should be taken.”

 See the original article published on Marijuana Moment below:

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