Is there hope for banks becoming lenders to the legal marijuana industry?

As long as legalization has been underway, those in the legal medical and recreational business have been having to find alternative source for funding and investment to support their operations. CalCann Holdings has emerged in California as one of the most valuable resources in terms of being able to support those in the legal marijuana business secure real estate financing and investors.

What’s The Deal?

The reasons that banks aren’t lending to too many legal marijuana businesses are plenty, but most significant is that at the federal level, it has been made illegal for banks to lend or take money from the legal marijuana industry, even at the state level. As a result, organizations like CalCann are observing that those involved in the legal marijuana industry are still using antiquated ways to manage their money, and are having to turn to alternative financing options to get the money they need to operate. This is the type of activities CalCann is supporting their clients to be able to avoid.

Is There Hope?

Those in the legal marijuana industry as well as the general public know by now that Donald Trump is not a supporter of marijuana. However, we also know that the advocacy efforts towards supporting the emergency of practices to support the legal cannabis industry will continue and will gain strength, and will still be coming from the state level.

This week, following the inauguration of President Donald Trump, Illinois State Treasurer Michael Frerichs issued a letter to the President urging him to bring clarity to the banking industry about medical marijuana.

In his letter, he highlighted to the President the problems that legal marijuana operations face when it comes to cash-only transactions and their inability to seek financial support from the banking industry.

Let’s Wait and See

While organizations like CalCann Holdings and other legal marijuana advocates wait for President Trump to make the sweeping changes that he is already making within days of his inauguration, it remains unsure as to what moves he will make in terms of clearing up the banking system at the federal level the ways they can or cannot work with the legal marijuana industry. CalCann has always worked under the idea that it will always be a solution for clients looking for real estate financing or investors for their legal cannabis operations.