Cannabis Firms Encounter Challenges in Securing Funding from Major Banks Despite Regulatory Changes, Experts Warn

Cannabis companies are grappling with high borrowing costs as large banks remain hesitant due to the federal illegality of cannabis. Although the reclassification of marijuana by U.S. President Donald Trump may alleviate some regulatory burdens, experts believe it won't significantly improve access to capital from major financial institutions. Many cannabis firms have been forced to rely on smaller banks or alternative lenders, which often charge higher interest rates. Trump's executive order aims to accelerate research into new medical marijuana products by easing federal restrictions, but until cannabis is fully legalized at the federal level, significant lending challenges will persist. Samantha Gleit, a partner at Feuerstein Kulick, noted, 'Rescheduling is a positive step, but I don't expect it to trigger major changes in lending behavior among larger banks.' The ongoing classification of marijuana as a controlled substance, subject to strict federal regulations, further complicates access to banking services for these companies. Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, mentioned that while some regional banks may show interest, major banks are unlikely to change their lending practices. The American Bankers Association has advocated for the SAFER Banking Act, which aims to provide clearer legal frameworks for financial institutions to service the cannabis industry. Ari Raptis, CEO of Talaria Transportation, expressed cautious optimism, highlighting that while the news improves the situation's appearance, fundamental barriers to capital access remain unchanged.