It’s no secret that marijuana companies have been having a tough time securing financing. According to New Frontier Data, a few of the challenges are due to low capacity for cannabis customers, higher fees for cannabis customers, and the additional costs associated with a cash environment.
However, things may be changing. In a podcast called Engage led by Andy Busch, Rob Nicholas, the CEO of the American Bankers Association predicted that the House of Representative will pass legislation that will permit banks to provide service to legal marijuana businesses no later than October.
“This is legislation that already passed in the House Financial Services Committee early in this calendar year by a huge bipartisan margin, and this is something that I predict…as early as September—probably no later than October—will pass the full House of Representatives by a bipartisan majority, which is exciting.”
He also noted that even though there is still work to do among the Republicans, which control the senate, there are,
“33 states where it is legal [for medical or recreational purposes] and so there’s a lot of senators who have been hearing from their constituents about these challenges in those particular states.”
Nicholas also pointed to hearings on the bill, which show that there is recognition that the issue should be discussed. The House Financial Services Committee and Senate Banking Committee discussed the issue this year.
He also stated,
“We’re excited that there’s a possibility to get this done. We’ll be pushing very hard. Again, we understand the cultural, societal and moral implications of this issue, but we need federal rule clarity so banks know who they can and cannot lend money to.”