Written by: Eric Singular
To put it in no uncertain terms, every echelon of the cannabis industry is in desperate need of banking services. One of the greatest challenges the legal marijuana industry faces is managing cash and securing financial services. This is true for plant-touching businesses, ancillary service providers, and financial institutions.
The SAFE Banking Act is filled with hopeful possibilities. The global cannabis market needs access to institutional capital, and our post-COVID economy needs the stimulus offered by the legal cannabis industry.
It seems that the floodgate moment we’re waiting for in the industry, is for the U.S. to have access to public markets. The removal of these banking barriers that have kept the U.S. cannabis market at bay may soon be addressed by the Secure and Fair Enforcement (SAFE) Banking Act, which is currently awaiting approval from Congress.
Without banks, state-compliant cannabis businesses can’t accept credit cards, acquire loans, set up deposit accounts, write checks, run payroll or pay taxes. This prohibits the U.S. from keeping pace with nearly all of its neighbors in the Western Hemisphere in the new commercial global cannabis economy.
The Hoban Law Group has long been a resource for industry operators who need assistance forging and maintaining banking and financing relationships, cash management, and legally transporting cannabis cash including. Helping a business grow requires capital and obtaining the correct form of debt or equity financing is where HLG shines most brightly.
HLG’s comprehensive command of the cannabis sector’s landscape, laws, and institutional players enables our firm to provide world-class banking services access, financing and lending alternatives, and financial distress relief.