Banking services for cannabis retailers remain limited
Constraints are impacting retirement planning for one Spokane dispensary owner
Carol Ehrhart, co-owner of Spokane-based dispensary 4:20 Friendly, faces obstacles saving for retirement due to constrained investment options for cannabis businesses.
It's been 12 years since the legalization of recreational marijuana in Washington state, with nearly half of U.S. states and the District of Columbia following suit this year. Despite this, some cannabis retailers in the Spokane area struggle to access a full range of banking products and services available to other businesses.
Challenges in Investment Products Access
Ehrhart reveals that acquiring investment products remains a hurdle for many cannabis retailers. While 4:20 Friendly now partners with Numerica Credit Union for cannabis business banking, accessing some financial products still proves difficult. Although Ehrhart can access about 90% of the credit union's offerings, she remains unable to purchase mutual funds, stock, or accept credit cards due to federal restrictions, hindering her retirement savings.
Evolving Banking Solutions
Numerica Credit Union introduces loans for cannabis clients, aiming to become a comprehensive financial institution for marijuana retailers. While not all banking products are available, the credit union facilitates checking and savings accounts, digital banking, and online domestic wires for cannabis businesses. Recognizing the additional compliance requirements for serving the cannabis industry, Numerica charges higher fees to accommodate the necessary due diligence.
Future Outlook
Numerica and 4:20 Friendly anticipate changes in federal legislation to enhance financial access for marijuana businesses. Both entities are monitoring the progress of the SAFER Banking Act, which could provide federal protections to state-sanctioned marijuana businesses and financial service providers. If passed, this bill may signify a significant step towards normalizing banking services for the cannabis industry.
Potential Rescheduling Impact
Rescheduling marijuana from a Schedule 1 to a Schedule 3 drug could revolutionize banking services for the cannabis sector. By allowing credit card payments and other non-cash transactions, the industry may experience improved financial accessibility. However, Ehrhart remains cautiously optimistic about the passage of such legislation, emphasizing the need for marijuana's reclassification to initiate substantial banking reforms.
In conclusion, the limited banking services persisting in the cannabis industry pose challenges for retailers like 4:20 Friendly, restricting their financial growth and retirement planning opportunities. As the industry advocates for legislative changes and financial inclusivity, the future of cannabis banking remains a topic of evolving significance.