Who’s Funding Cannabis Business Loans?
green cannabis plant close-up photography

According to governing.com, as of June 25, 2019, 33 States and the District of Columbia have adopted broad laws legalizing the medical and/or recreational use of marijuana aka cannabis. As the legalization of this still federally banned substance continues to grow, so does the robust industry that follows it. CNBC reported in February of 2019 that Colorado (the first state in 2012 along with Washington to legalize recreational use of marijuana) had passed $6 billion in revenue related to the legal marijuana industry. The demand for business financing for the cannabis industry has exploded as well, as more and more entrepreneurs rush to get in on the ground floor of a booming market. The problem is that the possession of marijuana is still a federal crime, resulting in very few lenders willing to throw their hat into the ring.

Who’s Funding This Multi-Billion Dollar Industry?

Much of the capital that has contributed to the expansion of the businesses spearheading the legal cannabis industry was funded by equity investors. The smaller mom and pop operations bootstrapped their businesses with savings, loans from friends and family and credit cards. Some local private lenders have stepped out on a ledge to make short-term loans priced at interest rates that make it worth their while. On the regional or national scale, no high-profile lenders are publicly funding the cannabis industry. A Google search for cannabis financing produces limited results populated with small, unfamiliar financing sources. So what reliable and reputable lenders are currently funding cannabis businesses on a wide scale?

Reputable Cannabis Lender

Strategic Capital, an up and coming player in alternative business loan financing offers a variety of funding options to the cannabis industry. Strategic has provided over $216 million to small business owners, maintains an A+ Better Business Bureau rating and a 5-star Trustpilot rating. Strategic offers uncollateralized cannabis business loans from $5,000 to $1 million to borrowers with credit scores down to 500. Strategic Capital’s business term loan rates start at 5.49%, and its factor rate loans start at only 1.10x. Strategic also offers commercial real estate and equipment secured loans to cannabis business owners, and will finance up to 60% loan-to-value (LTV) for loan sizes from $500,000 to $50 million. Startup business financing for your cannabis business may also be available to you through Strategic if you have strong personal credit and assets.

Strategic’s concierge level service and depth of experience helping unique small firms grow, make it an excellent partner for those seeking a loan for a legal cannabis business. Cannabis business owners looking for an uncollateralized loan can check what financing options are available to them through Strategic in as little as 60 seconds, and without their credit being affected. Those cannabis business owners or loan brokers seeking a commercial real estate secured loan can contact Strategic Capital here.


It’s important to note that the lenders mentioned above, and those other lenders presently extending capital to cannabis businesses, are only doing so for those legal businesses operating in states where cannabis has been decriminalized. There are likely other lenders out there willing to lend to the cannabis industry, but until the possession of cannabis is legal at the federal level, don’t expect a large amount of third-party debt or capital to flow into this industry. With risk can often come reward, which means those entrepreneurs and lenders willing to dive into the burgeoning cannabis industry and gamble on federal decriminalization in the future, will likely benefit from their first-mover status.

If you are interested in obtaining a business loan for your cannabis company, contact our recommended cannabis lender Strategic Capital.