Review the Safe Banking Act, lend money to cannabis businesses
UTICA, NY (WUTR) – Last month, the House of Representatives passed what’s known as the Safe Banking Act. This would give the marijuana industry access to fair banking services and allow financial institutions to lend money to legitimate cannabis-related businesses.
“With all of the social equity provisions and the diversity we want to create in this industry, it’s important that small business owners have the opportunity to get the financing they need to start their business,” says Jason Erkes , Director of Communications at Cresco Labs. .
Because recreational marijuana is not legal in all 50 states, it makes distributing the product difficult and expensive. Erkes said, “There is no internal state trade, it is not legal at the federal level. So when we come to a state like New York, we have to develop our product there, we have to make our brands, distribute them to dispensaries. Dispensaries sell it and consumers have to consume it all in New York State. And there really is no other industry like this in the country or in the world.
The Senate has yet to vote on the bill, but if passed, Erkes says it will generate even more revenue for the cannabis industry. Erkes adds, “but I hope the Senate understands the importance of a bill like this for an industry that creates tens of thousands of jobs and generates billions of dollars for the national economy.”
In March, New York City legalized the recreational use of marijuana, but the state has yet to release licensing guidelines.