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Marijuana Business News

Federal Government To Let Banks Work With Marijuana Businesses

banking marijuanaThere was a lot of big marijuana news that occurred this week, but the biggest news came out of Washington D.C. today. United States Attorney General Eric Holder stated that an announcement is coming soon which will allow banks to finally work with marijuana businesses. Banking has been a major issue for the marijuana industry.

The federal government has worked hard for a long time to ensure that the legal marijuana industry is a cash-only industry. The federal government put pressure on banks to not work with marijuana businesses, and also pressured armored truck companies to shun the industry as well as stopped credit card companies from working with the marijuana industry. All those rules resulted in marijuana businesses stockpiling enormous amounts of cash, making them targets for theft.

“You don’t want just huge amounts of cash in these places. They want to be able to use the banking system,” Holder said according to Politico. “There’s a public safety component to this. Huge amounts of cash—substantial amounts of cash just kind of lying around with no place for it to be appropriately deposited is something that would worry me, just from a law enforcement perspective.”

I can’t overstate enough how huge this is, assuming the announcement is backed up by action. A lot of people have been lobbying for a change to banking policies for a long time now. I’m ecstatic that things are finally moving in the right direction. I’m curious how this will affect loans to marijuana businesses. Right now a lot of businesses have to rely on angel investors to help them out. It would be nice if businesses could go to a traditional bank and get a business loan, instead of mortgaging part of their future in order to expand.

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  • Start a private credit union

  • MrPC

    This is huge news if true. Is that a white flag I see waving in the distance?

  • Pinkmoon

    That’s weird because we own a medical marijuana center for 5 years now in Colorado Springs and the banks stopped doing business with us 2 years ago, but when recreational stores opened they were able to use banks and credit card companies. How is that? And I know some medical marijuana centers are using private accounts and personal just to stay in business which is money laundering. It doesn’t make sense!

  • Lo Bar

    Jeez, who can trust these ‘bankers’? I liked TacticalEdges answer, start ur own private credit union,,no? Pinkmoon, don’t sweat it,,other persons name works wonders till u can TRUST where ur $ goes,,,don’t mean to ‘rain’ on anyones high hope here,,just sayin!!

  • Art

    I have the notion that once cannabis has a place to bank that the money will “talk” to lawmakers who will then see the light. Lawmakers will see the right way clad with the truth of self interest.

  • painkills2

    Scammer, scammer, pants on fire!