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W W W. M A I N E B I Z . B I Z 21 J U N E 2 7 , 2 0 2 2 F O C U S B U S I N E S S O F C A N N A B I S Peace products. "If you're a small grow or small retail outlet and you want to live your dream of being a part of this industry, but the require- ments are such that you have to come up with a considerable amount of capital … It puts the small player out of business." Henry notes that while there are some lenders out there willing to loan to the industry, they do so under often prohibitively steep terms. The SAFE Banking Act Enter the Secure and Fair Enforcement (SAFE) Banking Act, first brought to congress in 2013 by U.S. Rep. Ed Perlmutter, D-Colo. It passed six times in the House of Representatives, most recently in 2019 with a wide bipartisan majority. It is supported by all of Maine's congressional delegation. e SAFE Act would prohibit federal banking regulators from penalizing a bank or credit union for providing banking services to state- legal cannabis-related businesses, essentially eliminating the cash-only aspect of the industry and giving can- nabis businesses access to loans and potentially affordable insurance and credit and debit cards. Supported by the American Bankers Association, all 50 state banking associations, and the Credit Union National Association, the bill has been stalled in the Senate by its leadership since 2019. Proponents are hopeful it has a fighting chance this legislative session as it was folded into the House's ver- sion of the America Competes Act, which is now in committee working on rectifying discrepancies between it and the Senate's version, which did not include it. "Enacting the SAFE Banking Act via the jobs and competitiveness legislation before us would support a rapidly growing industry that creates jobs, fosters innovation, supports small businesses, and raises revenue in states that have chosen to legalize cannabis, while reducing safety risks to industry employees and the public alike," stated a recent letter written by 23 bipartisan senators, including U.S. Sen. Angus King, I-Maine, who co-sponsored the Senate's version of the SAFE Act, to congressional leadership urging its inclusion in the final version of America Competes, which congress is trying to pass before the August recess. In opposition to the SAFE Banking Act is Smart Approaches to Marijuana, an alliance advocating for cannabis policy that seeks a middle road between incarceration and legalization. "I'm a firm believer in incremen- tal legislation," says Silsby, who visits Washington three times a year to lobby Maine's delegation, and thinks the SAFE Act has a shot this time. "I know this is not perfect, but let's get here and let's get the cash out of the system." David Cyr, president and CEO of Skowhegan Savings Bank, agrees. "It's a real challenge to navigate federal regulations without clearer guidance from the federal govern- ment," he says. "We are in favor of the SAFE Banking Act as it would give financial institutions a clear and safe path to providing traditional banking services to the industry." Many in the industry are frustrated this legislation has taken so long and some fear that, while protecting banks, it may still not do enough for the industry that Cutrone characterizes as built on the backs of small businesses. "I think Maine's industry in par- ticular is built on craftsmanship, cot- tage industry and quality, and it's vital that the small businesses that built it are protected as the industry grows," she says. "While cannabis is the most productive industry in the state, those of us who want to operate legally need manageable ways to do so." Cutrone is in favor of the bill, but worries that it could still lead to a future of inequity without adding specific protections for small busi- nesses, like those given to minority- and women-owned businesses in the current bill. "We're not asking for anything special here," says Henry. "Just a level playing field." Catie Joyce-Bulay, a freelance writer, can be reached at editorial @ mainebiz.biz NKENNE It's a real challenge to navigate federal regulations without clearer guidance from the federal government. — David Cyr Skowhegan Savings Bank

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