Despite the growing popularity and legality of cannabis products and CBD Oils in states across the country, the federal government still considers sale, purchase or use of cannabis products to be illegal. This means that obtaining a loan can be difficult because federal banking laws consider banks that offer cannabis business loans to be open to prosecution, and banks are risk-averse even under circumstances that allow marijuana businesses to receive small business loans. This means that FDIC-insured banks will most frequently deny all marijuana-related business loans, even opening a business checking account is not easy and only local credit unions are willing to do it.

In fact, under 40% percent of all dispensaries even have bank accounts. Despite the popularity, medical benefits and relative safety of cannabis, it remains classified as a Schedule I drug at the federal level. This is the same classification that applies to cocaine, heroin, and other much “harder” substances. While legislation has been introduced to change the scheduling of marijuana, none has yet been passed — which leaves cannabis working capital from your local bank to be a substantial obstacle.

However, there are alternative options that can help you secure funding for your dispensary or other cannabis-based businesses. Alternative business financing for the marijuana industry is available from specialized and innovative business lenders like Carmalan Financial .