With the Drug Enforcement Administration still classifying marijuana as an illegal drug, traditional forms of financing remain out of reach for cannabis related businesses. Ryan Magee shares insight with NJBIZ on the banking community’s growing interest in serving the market.
“Banks and credit unions are rightfully becoming less wary of doing business with cannabis-related businesses (CRBs),” Ryan said. “While regulatory compliance has long been the cited reason for banks declining to do business in the space, I believe reputational risk has also played a role. To actively do business with cannabis businesses means to voluntarily invite further scrutiny from industry regulators—even if you are going about it in a compliant way.”