Cannabis Financing

Learn how different states view Marijuana and what financing options are available for your Cannabis Business.

We've all heard the saying "The Green Rush" and while it's no secret the cannabis industry is booming, it's important to stay on top of laws and regulations. This can vary from state to state, so we have compiled a comprehensive resource for you to make sure you are up-to-date and compliant.

Cannabis loans by FundCanna

We have categorized each by whether they are fully legal (medicinal, recreational), partially legal (medicinal), or fully illegal.

Search below to learn about Cannabis Financing in each State

cannabis-legalization-map

The legal cannabis industry continues to boom despite its remaining pain points, including limited access to FDIC-insured financial institutions.

Cannabis loans by FundCanna

We've all heard the term "Green Rush" by now, and we've seen the influx of new operators to the space. The cannabis industry's booming market has created a wide-open race to the top, with many names yet to enter the fray. To sit atop the maturing marketplace, companies must stay on the ball and have the funds ready to deploy.

First movers certainly have their benefits, but the cannabis businesses that are best poised for success are the ones staying on top of this always-moving industry.

Staying up to date on market movements is essential to remaining a market leader and compliant every step of the way. Operators need to be on top of the news on the federal, state and local levels, simultaneously tracking stock prices, proposed legislation and regulatory changes. 

Depending on the state, cannabis laws may be recreational ("adult use"), medical-only, or completely prohibited. The status certainly has an impact on the license types available, as well as the funding options. Depending on the state, finding funding for your cannabis business could either be relatively feasible to difficult to find to virtually impossible.

Thankfully, times are incrementally changing for American cannabis companies. Despite the dearth of FDIC-insured business financing options, marijuana brands have options thanks to numerous lending partners.

What Is Cannabis Business Financing?

With limited traditional options, cannabis brands have found alternative funding methods in various forms. Numerous financial institutions offer cannabis companies financing options. In doing so, marijuana ventures can act more like businesses operating in federally legal marketplaces.

Depending on the company, their goals and other qualifying parameters, cannabis businesses can apply for various forms of financial relief to increase lines of credit, improve purchasing power and scale a growing business, among other valuable benefits.

cannabis business financing

Does My Cannabis Business Qualify?

That question has to be answered on a case-by-case basis. Generally speaking, just about any cannabis company has the chance to qualify for one or more financial solutions.

 

Most lenders, including FundCanna, are eager to work with any company under the broad definition of the cannabis market.

 

THC and CBD-focused cannabis companies are finding much-needed business financing thanks to various lenders and financing options. Some of the common marijuana business sectors taking advantage of the opportunity include:

Various Financing Solutions To Consider

Cannabis loans by FundCanna

At FundCanna, we live up to our name. It is a thrill to provide this thriving space and its operators with the financing options needed to start, scale, and succeed. Through various options, we're proud to serve the industry with:

Dispensary Financing

Dispensary financing provides retail brands the funds to operate in the black while making crucial company expenditures. With a dispensary small business loan, companies can obtain commercial real estate, pay staff, buy high-quality products for sale and just about anything else that helps grow the dispensary into a viable player.

Equipment Financing

Get the equipment needed without breaking your bank. Equipment purchases are immense undertakings even when compared to most other business purchases. Rather than buy or lease machinery outright, we'll pay the cost to the vendors. Over time, you can pay us back at an established interest and repayment rate.

Vendor Financing

Avoid significant hits to your bottom line. Vendor financing allows cannabis brands to make purchases, including larger-scale orders that typically come with seller discounts. Rather than pay large sums of your company's money, FundCanna will foot the bill, leaving you to pay the purchase back over a fair interest rate and designated period.

Working Capital

Working capital offers cannabis companies non-dilutive cash advances for various business functions and endeavors. A working line of money helps cannabis business owners operate in multiple ways, from providing short-term margin relief to paying vendors and staff.

Is Cannabis Legal In My State?

legalize cannabis

It's always important to remember that the current eroding period of cannabis prohibition is history's outlier. Prohibition came after thousands of years of use across various global communities worldwide.

 

Still, various nefarious ulterior motives and propaganda led most of the world to the ban on the plant and the destructive drug war.

 

Thankfully, advocates' efforts over several decades have led us to this point. Now, we stand poised to reclaim our cannabis rights. All the while, we can create fair business opportunities across this blossoming sector.

Which States Have Legalized Medical Cannabis?

Cannabis prohibition began back in 1911. For six decades, the US suffered from full-on plant blockades. Despite the ongoing war on drugs, progress started to arrive in the 1970s in the form of decriminalization, with Texas being the first to take action in 1973. The 1990s saw medical cannabis reform start, with California approving Proposition 215 in 1996.

 

Today, most American states have some form of medical cannabis laws on the books. Some marketplaces are just about as free as can be, while others restrict access to only a few medical patients, low potency products and other factors often criticized.

 

Nonetheless, progress is underway, following in the lead California set in 1996. As of July 2022, 37 states have enacted some form of medical cannabis regulations:

Which States Have Legalized Recreational Cannabis?

In 2012, 101 years after prohibition first took its ugly grip on the nation, Colorado and Washington became the first two states to approve recreational cannabis use and sales.

It's safe to say we know where things went from there.

The following years have seen 19 states take up the measure in addition to medical use.

  • Alaska
  • Arizona
  • California
  • Colorado
  • Connecticut
  • Illinois
  • Maine
  • Massachusetts
  • Michigan
  • Montana
  • New Jersey
  • New Mexico
  • New York
  • Nevada
  • Oregon
  • Rhode Island
  • Vermont
  • Virginia
  • Washington

Washington, D.C., has passed adult use laws as well. However, a federal rider has prohibited the District from enacting the rules and its marketplace. Local lawmakers continue to attempt workarounds on the matter.

US territories have also taken up recreational laws in some form or fashion. Those to do so include:

  • Northern Mariana Islands
  • Guam
  • Virgin Islands
Alabama No N/A Yes 2021
Alaska Yes 2014 Yes 1998
Arizona Yes 2020 Yes 2010
Arkansas No N/A Yes 2016
California Yes 2016 Yes 1996
Colorado Yes 2012 Yes 2000
Connecticut Yes 2021 Yes 2012
Delaware No N/A No 2011
Florida Yes 2022 Yes 2016
Georgia No N/A Yes 2015
Hawaii Yes 2022 Yes 2000
Idaho No N/A No N/A
Illinois Yes 2019 Yes 2013
Iowa No N/A Yes 2017
Kansas No N/A No N/A
Kentucky No N/A No N/A
Louisiana No N/A Yes 2015
Maine Yes 2016 Yes 1999
Maryland No N/A Yes 2013
Massachusetts Yes 2016 Yes 2012
Minnesota No N/A Yes 2014
Mississippi No N/A Yes 2022
Missouri No N/A Yes 2018
Montana Yes 2020 Yes 2004
Nebraska No N/A No N/A
Nevada Yes 2016 Yes 1998
New Hampshire No N/A Yes 2013
New Jersey Yes 2020 Yes 2004
New Mexico Yes 2021 Yes 2007
New York Yes 2021 Yes 2014
North Carolina No N/A No N/A
North Dakota No N/A Yes 2016
Ohio No N/A Yes 2016
Oklahoma Yes 2021 Yes 2018
Oregon Yes 2014 Yes 1998
Pennsylvania No N/A Yes 2016
Rhode Island Yes 2022 Yes 2006
South Carolina No N/A No N/A
South Dakota No N/A Yes 2020
Tennessee No N/A No N/A
Texas No N/A No N/A
Utah No N/A Yes 2018
Vermont Yes 2020 Yes 2004
Virginia Yes 2021 Yes 2004
Washington Yes 2012 Yes 1998
West Virginia No N/A Yes 2017
Wisconsin No N/A No N/A
Wyoming No N/A No N/A

FAQ's

You certainly can get a cannabis business loan or other financing solutions. However, the sources aren't likely to come from traditional financial institutions. With conventional banks approving roughly 20% of their annual loan applications, cannabis applicants face slim chances. Throw working in a federally illegal industry, and the options dwindle.

 

FundCanna brings 20 years of small- and medium-sized business experience to the equation. Our experts help guide brands throughout the funding process, be it for loans or other financial solutions. In the end, the goal is to help the company grow.

Processes can vary by lender. It's wise to find an option with a straightforward financing process.

 

Our 3-step application process is aimed at streamlining the process. You can fill out the online application and upload the required documents in just five minutes. Expect to hear back with a result in as little as a day.

Funds typically reach your bank account the day you are approved. FundCanna does this because we know how important it is to have cash on hand for your growing business.

We offer numerous cannabis financing options, including:

  • Working capital loans
  • Equipment financing
  • Lines of credit
  • Dispensary loans
  • Vendor financing

 

Not sure which option is best? Our team is happy to help provide you with the information needed to choose which path is best to scale your business.

A Team Of Experts Ready To Help Your Business

FundCanna's team brings over 20 years of expertise in funding ventures across the country. In that time, we've provided nearly $20 billion in reserves to businesses and owners across the country.

Cannabis loans by FundCanna

We want the legal cannabis industry to consider our resources and industry experience theirs to utilize. We are ready and eager to help cannabis businesses fund various endeavors through loans, equipment and vendor financing, real estate leasing and cash advances. And with the time of the essence, we do our best to process applications fast, with some receiving responses in just 24 hours.

We have the expertise and efficiency to get the job done. But it's our unequaled passion for the market that allows us to stand out. We can't wait to see legalization march forward, and companies grow from startups to success stories.

Ready to fund your company with a fast,  
reliable team of experts?

Contact us today to learn more and apply.

Get the funding you need. FAST.

Approvals in as little as 24 hours

Cannabis Business Loans