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V O L . X X V I I I N O. X I I I J U N E 2 7 , 2 0 2 2 20 B U S I N E S S O F C A N N A B I S "In many respects," Silsby says, "the federal government has deputized us in this effort and we don't really want to be in this spot." Insurance is another sticking point. Most insurance companies won't cover the cannabis industry. Ones that do, do so at high rates. Banks feel the insurance pinch as well, since insur- ance carriers won't pay on a directors and officers claim related to cannabis, whether the bank was initially aware of it or not. Shut out Even with a bank account, a canna- bis business may be unable to access credit or debit cards or the bank loans critical to most businesses in startup and growth phases, putting many small businesses at a huge disadvantage. For Cutrone, who had a prior career in global business development with the tech industry and calls her and her husband serial entrepreneurs, this meant dipping into her own per- sonal resources, including retirement savings. She says because they don't have access to loans, they are not yet able to run at full capacity. She also points out that the cannabis industry doesn't have access to Small Business Administration services, since it is a federal program, putting it at an even greater disadvantage. Ben Samuelson, owner of Monroe- based Seed & Soil, which sells cannabis seeds and plants, points to the credit access challenge as an equity issue. "We're pretty privileged that we had access to personal loans through friends and family, which gave us an advantage, but others who have the same skills or even more but don't have the family and social capital couldn't do this," says Samuelson who co-owns the business with wife Betsy. "It's unequitable in my opinion." Jim Henry, co-owner with wife Rebecca of Sweet Dirt, a cannabis farm and retailer with three locations around the state and 130 employees, agrees. He characterizes the industry as highly capital-intensive due to the nature of regulation requirements like outfitting facilities with hundreds of cameras, and expressed deep frustra- tion with the current credit dilemma the industry faces and Congress' lack of action to fix it. "It becomes a situation where the small business gets pushed out," says Henry, who also retails Moment's » C O N T I N U E D F RO M P R E V I O U S PA G E Entrepreneurship and Innovation are Deeply Rooted in the Maine Economy When starting a business, you have a lot to keep your eye on. Sometimes it's hard to see the opportunities and the risks clearly. That's where Drummond Woodsum attorneys Michael High, Aaron Pratt, Gary Vogel and Lisa Whitt can help. We provide expertise in all phases of your business, from formation and financing to strategic relationships and business combinations. It's important for start-ups and young companies to get the legal insight they need, so that they can focus on growing their business. We offer practical, business-focused advice and have shepherded many companies from formation through ultimate sale and liquidity for founders. We practice law differently. Since 1965. dwmlaw.com dwmlaw.com | 800.727.1941 800.727.1941 P H O T O S / C O U R T E S Y O F S W E E T D I R T Jim Henry is co- owner of Sweet Dirt, a cannabis farm and retailer with three locations and 130 employees in Maine. F O C U S

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