Cannabis Business Loans

The cannabis industry is a dynamic, fast-evolving space full of opportunity—but accessing reliable business financing isn’t always simple. As you grow your business, whether it’s cultivating, selling, manufacturing, or distributing, there will be times you need outside capital. With banks often sitting on the sidelines due to federal regulations, cannabis businesses rely on funding solutions built specifically for the space. 

We understand the pressures and real-world challenges you face. Cash-flow gaps hit hard in a rapidly evolving market like this. That’s why we focus on practical, actionable business guidance so that you have a clear path to the funding you need.

Key takeaways

• Traditional banks won’t approach cannabis businesses due to federal rules. So, specialized lenders are where real funding happens.
• There are financing options: term loans, lines of credit, equipment financing, and commercial real estate loans built for growers, dispensaries, manufacturers, and distributors.
• Industry-savvy lenders know the industry and offer tailored solutions when mainstream finance can’t. 
• SBA loans aren't available to cannabis businesses. Aim for private credit lenders who actively fund the cannabis space.
• Focus on strong revenue, a clear business plan, proven compliance, and transparent records. These factors increase your odds of securing funding.
• Private lenders and venture capital offer additional paths for growth.
• Winning takes strategy: plan your finances and partner with the right finance provider to stay ahead.

What do you need to qualify?

Navigating the cannabis financing landscape 

Cannabis businesses operate in a regulatory maze: even where cannabis is legal at the state level, federal law still creates roadblocks. Since most banks and credit unions are federally regulated, they rarely provide loans for cannabis-related businesses (CRBs).

It is not a reflection of your business’s potential, but rather the result of federal restrictions and compliance burdens. That’s why questions like “Do banks work with dispensaries?” almost always get the same answer which is “ not in any consistent or reliable way.” 

This means if you’re a cannabis business owner, you’ll need to work with private capital firms who adapt to the industry’s unique rules. These dedicated finance providers know that even highly profitable operators struggle to access traditional credit.

Knowing this funding landscape, and why conventional financing isn’t an option, is the first step toward choosing solutions that keep your business moving.

Your essential toolkit for cannabis business financing

Growing a cannabis business requires smart, flexible funding. Outside of traditional banking, there are several specialized financing choices designed specifically for the industry.

Your cash flow financing options

Managing cash flow is one of the toughest parts of running a cannabis business. Seasonality, high upfront costs, unpredictable payment cycles. The good news is working capital solutions help fill those gaps.

Term loans – A term loan gives you a lump sum repaid in predictable installments. Lenders who understand the market customize these loans for major purchases or inventory.
For example, a wholesale business with $5M in annual revenue needing $300,000 before a busy season can use a term loan aligned to its sales cycle. 

Lines of credit – A line of credit works like a flexible safety net: take only what you need and pay interest only on what you use. It’s ideal for bridging short-term expenses, jumping on last-minute opportunities, or covering payroll when sales are slow.

For example, a growing e-commerce dispensary may rely on a $250,000 line of credit to stay agile during peak demand.

Together, these options bring you the flexibility to cover day-to-day costs, stabilize operations, and keep growing even when traditional banks won’t help.

Equipment financing for growth and efficiency

Cannabis is equipment-heavy. Lighting, HVAC, advanced extraction, processing, and specialized retail tech don’t come cheap. Equipment financing lets you get what you need now and pay for it over time, without draining your cash reserves.

Because these loans or leases are secured by the equipment itself, approval is often more accessible—even for newer businesses or those without extensive credit history.

A cultivator with $8M in revenue can finance $400,000 in new lighting to increase efficiency and output immediately. Likewise, a processor can apply equipment financing to deepen extraction capacity and gain market share.

The reality of SBA loans for cannabis companies

SBA loans generally don’t apply to cannabis enterprises. Any business earning revenue from the still-federally-illegal plant is automatically disqualified, including cultivators, processors, retailers, and several ancillary services.

While SBA loans offer great rates to many small businesses, cannabis entrepreneurs must build relationships with lenders who specialize in this unique space.

Looking at private lenders and venture capital 

Have ambitious goals or plans for expansion? Private firms and venture investors are increasingly backing cannabis businesses with both debt and equity funding.

Private lenders – These are not tied to federal banking rules, so they can base funding decisions on your revenue, cash flow, and growth plans. Their loans are often flexible and tailored to you, though they may involve higher rates or some equity restrictions.

Venture capital – If you are building for scale, whether through expanding technology, entering new markets, or acquiring competitors, venture capital can provide significant funding in exchange for equity.  VC partners also usher in expertise, industry connections, and strategic support. This path is standard for cannabis tech companies and businesses pursuing rapid or large-scale growth.

What lenders look for in cannabis business loans

Niche lenders understand the industry, but they are selective. They typically are on the look out for:

• Consistent revenue and cash flow: You want reliable financials, with many favoring businesses in the $2M to $10M+ revenue range. Steady cash flow and clear seasonal trends always strengthen your case.
• Clear business plan: Illustrate how funds will support operational improvements, expansion, or new market entry. Prove your management’s industry experience and compliance record.
• Industry and regional focus: Operators in cultivation, manufacturing, distribution, construction, and last-mile delivery stand out, especially in California, Texas, New York, and Florida.
• Collateral and guarantees: Anticipate pledging assets like equipment, inventory, or real estate. These guarantees may be required for smaller cannabis companies or larger loans.

Being transparent, organized, and strategic goes a long way in boosting your approval chances.

Unlock the Lowest Rates, Longest Terms, and Highest Amounts

Position your cannabis business for funding

Smart funding isn’t just about getting money in the door. It’s about setting your business up for healthy, sustainable growth. Here’s how to break it down:

• Have a plan – Know how much you need, why you need it, and how it supports your business goals, whether you’re preparing for a busy season or expanding operations.
• Keep impeccable records: Accurate financials and strong regulatory compliance are essential. It’s the most effective way to prove to lenders that your business is seriously reliable.
• Build relationships: Specialized capital partners are valuable allies. Stay connected, even before you need funding so they can move fast when opportunity knocks.
• Think ahead: Use working capital to solve today’s cash crunch—but also to invest in productivity, inventory, or access to new markets. Being proactive with your strategy lets you catch growth waves, not just patch holes.

Helping cannabis businesses access smart, sustainable financing

Scaling a cannabis business isn’t simple, but you don’t have to navigate it on your own. Even though big banks and federal programs often exclude this industry, a strong network of dedicated financial partners is available to help you fill gaps, overcome challenges, and hit milestones.

Your work drives this sector, and smart financing ensures you can keep building, innovating, and staying ahead. With access to term loans, lines of credit, equipment or real estate financing, and growth-focused investors, you can tackle obstacles and expand on your terms.

Are you ready to take the next step? Let’s talk about a funding solution that fits your timing, your goals, and your reality. Apply through our digital application today.