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Banking & Cannabis: The Next Frontier Webinar

Client Alert

On Tuesday, September 21st, BMD’s own Banking and Cannabis Partner, Stephen Lenn, hosted a star-studded cast of panelists in a webinar titled Banking & Cannabis: Cannabis Lending, The Next Frontier. The webinar, which had to suspend registrations when hitting a maximum cap of 500, aimed to explore issues related to cannabis and banking, with a particular emphasis on lending. With the sponsorship and support of the Bankers Associations of Arizona, Colorado, Ohio and Utah, Steve was able to recruit an elite group of bankers, bank regulators, cannabis industry players, and cannabis regulators, who took the topic head on. The discussion kicked off with an opening from the keynote speaker, VP of Congressional Affairs for the American Bankers Association, Tanner Daniel.

Mr. Daniel opened the panel discussion with an observation that even though he never envisioned being involved in cannabis lobbying, yet the political climate and rapidly changing laws of cannabis thrust him into the space. With that, Mr. Daniel discussed the realities of passing the various pieces of legislation currently pending at the federal level, but a pervasive theme followed his comments and the rest of the conversation – banking the cannabis industry is here, and it going to keep moving forward!

From there, the discussion was passed onto the panel of bankers, industry players, and regulators who addressed banking and cannabis from their points of view. The robust conversation ranged from how bankers got into the business, their experience with regulators, how they perform risk-based assessments to categorize certain cannabis businesses when providing bank services, to issues facing cannabis executives and employees who are trying to obtain personal loans and mortgages, then topped off the discussion by describing how cannabis regulators interact with financial institutions throughout the licensing process.

The webinar ultimately created several important results. First, the program brought together prominent constituencies in the banking and cannabis space which will facilitate greater collaboration and future successes among those stakeholders. Second, it provided actionable information to the attendees – about 75% of whom were bankers representing more than 200 banks, including a dozen of the 56 largest. Finally, even if measured only by the level of interest reflected by capacity registration, it substantiates the almost inevitable expansion of banking for the cannabis industry – and that everyone must be ready.

For a recording of the webinar, click here. For more information on the importance of banking and cannabis, click here for a compilation of related materials.

Please direct all related inquiries to cannabislaw@bmdllc.com


Community Banks: Collaboration, not isolation, is the key to protecting/ enhancing the cannabis business you pioneered

As we prepare for the plenary session of the informal institutional cannabis lenders community announced in my previous article, I am pleased to advise that participants now include 5 of the best-known dedicated loan funds; a select group of commercial banks ranging in size from single state community banks to mid-size regionals making cannabis loans into the mid-8 figures; and, a syndicator of credit union cannabis loans.

Inflation Reduction Act: Healthcare Provisions

On August 16, 2022, President Joe Biden signed into law the Inflation Reduction Act (the “Act”), a landmark climate, healthcare, and tax bill. Though the Act’s climate provisions have received most of the media attention, the healthcare aspects of the Act present some of the most significant changes to the American healthcare system since the passage of the Affordable Care Act.

The Current State of Assignment of Benefits Litigation in Florida

On May 25, 2022, Florida lawmakers approved property insurance reforms that remove attorney’s fees, with respect to assignment of benefits (“AOB”) property insurance litigation. One-way attorney’s fees are a longstanding problem in Florida and the reforms come at a time when AOB litigation increasingly affects homeowners in a negative way.

Proposed Community Revitalization Grants for Ohio Projects

Jason A. Butterworth client alert ohio tax credits historic preservation tax credits community revitalization grants

Ohio Senate Bill 225 Paves the Way for Greater Investment in Opportunity Zones and Historic Districts

Ohio Senate Bill 225 is poised to make dramatic enhancements to certain tax credit programs in Ohio, specifically those surrounding investments in “Opportunity Funds” and historic buildings. Signed into law by Governor Mike DeWine in June 2022, the Bill is positive news for real estate developers working to revitalize Ohio communities with investment and rehabilitation projects.