Canada: the federal government comes to the rescue of cannabis companies

Canadian cannabis companies affected by the consequences of the coronavirus pandemic will be eligible for federal emergency assistance. The Business Development Bank of Canada (BDC), owned by the Government of Canada, has released an exceptional credit of $40 billion, open to all companies.

«Any legal company is eligible to be part of the program, which is what I think some industry groups were concerned about,» a declared Michael Denham, CEO of the investment bank. «This has been clarified and we will announce it officially on Monday.

Although it supports higher-risk loans than banks, the state bank aims to be commercially viable. Companies needing help will first have to approach their bank and prove that they could have managed a loan before the coronavirus struck. The BDC has also lowered its interest rates and waived its fees.

«All these changes are about making us as easy and accessible as possible,» said Denham. «We're doing what we need to do.»

The impact of coronavirus on the Canadian cannabis industry

The Canadian cannabis industry was already experiencing difficulties before the pandemic. While online sales continue, in-store sales are not always authorized.

Ontario, Canada's most populous province, originally considered the cannabis stores as essential businesses. However, they were excluded last week, to retain only online sales. Guaranteed same-day home delivery was also halted due to a massive influx of orders. The store closure order came into effect on Saturday evening. However, the province issued an emergency notice on Tuesday to allow cannabis stores to sell takeaway cannabis in front of their stores.

In Quebec, the SQDC continues in-store sales and recommends online sales where possible. As in supermarkets, the number of customers is limited in store, and employees are protected by masks and Plexiglas windows.