EVERETT — When a man applied for a Small Business Administration loan, the bank didn’t realize he reportedly was going to use the money for his marijuana business.
Now, he’s being charged with first-degree theft in Snohomish County Superior Court.
In 2014, the 40-year-old man allegedly told an Everett bank he would use the $206,900 loan for HVAC equipment. He said it would be installed in a Lyman-based storage facility that would service contractors working in water damage remediation, according to charging papers filed in court Monday.
He reportedly told everyone else, including the city of Lyman and the Washington State Liquor and Cannabis Board, that he would use the same building solely for marijuana production.
The defendant had good reason to want the SBA loan. Compared with other financing options, the loan offers lower down payments and longer repayment terms.
One problem: the SBA doesn’t allow loans to borrowers who make, sell or distribute products “in connection with illegal activity.” From the federal agency’s perspective, that includes marijuana.
Inspectors visited the site two years after the loan was approved. They found the defendant wasn’t providing services to water remediation contractors. He was running a business producing marijuana, with the necessary permits and licenses.
The bank informed the SBA that it would not have approved the loan if it knew the truth.
The defendant has no other criminal history. An arraignment is scheduled in November.
Zachariah Bryan: 425-339-3431; zbryan@heraldnet.com. Twitter: @zachariahtb.
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