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Institutional Cannabis Lenders Community Holds First Meeting

Blog Post

BMD Attorneys Stephen Lenn and Brandon Pauley have organized the Institutional Cannabis Lenders Community (ICLC), which is a community of institutional lenders including banks, credit unions, dedicated cannabis loan funds and family office/ultra-high net worth investors and are excited to announce that the group recently held its first meeting. The more than 20 participants in the ICLC, which was organized to enhance relationships among institutional cannabis lenders and provide forums for evolving best practices, includes four of the major cannabis loan funds, more than a dozen banks and credit unions, and a cross section of other organizations that are involved in institutional cannabis finance activities.

The initial virtual meeting was held on July 19th. The meeting topic was best practices for “Internal Revenue Code Section 280E for Lenders.” The presentation was offered by James B. Mann, a preeminent 280E tax attorney who was lead counsel for Harborside and argued its appeal in the U.S. 9th Circuit Court of Appeals of an adverse 280E U.S. Tax Court ruling (Patients Mutual Assistance v. Commissioner). James advises companies with respect to cannabis-tax related topics.

During the presentation, James offered insights for the cross section ICLC constituencies that were represented on the call regarding:

  • The need for lenders to understand and take steps that may be available to mitigate the potentially significant consequences of 280E tax lien priorities
  • Cannabis tax planning issues relevant to lenders
  • Cannabis 280E due diligence, including Federal tax return red flags

At its organizational meeting in Scottsdale this past March, ICLC (Institutional Cannabis Lenders Community) participants determined to target 2 virtual and 2 in person meetings, the latter scheduled around major cannabis conferences many participants would be attending. The next in person meeting is scheduled for September 26th in Chicago the day before the Chicago Benzinga Capital Conference. The meeting will be held at the conference hotel, the Chicago Marriot Magnificent Mile.

If you are interested in participating in the ICLC or attending the upcoming meeting, contact Steve Lenn,, or Brandon Pauley,

Entourage Effect and Shield Compliance Join the ICLC

In a continuation of its recent growth, only a bit more than a year after its organization, the ICLC is pleased to announce the addition of 3 more new participants. One of these is a commercial bank. In accordance with our commitment to our bank participants, they are not identified outside the Community unless they specifically authorize it. The other 2, Entourage Effect Capital (EEC) and Shield Compliance, are each well known within the cannabis industry and will enhance the ICLC’s potential value to its participants, enriching the spectrum of relevant and accretive cannabis industry experience, skillsets and perspectives available to them.

Trulieve Tax Announcement and the ICLC Growth Spurt

On March 12, leading cannabis tax lawyer James Mann made an extremely timely virtual presentation to ICLC participants regarding the announcement by Trulieve of its receipt of more than $100 million of tax refunds in connection with a challenge to what it owes under Section 280E of the Internal Revenue Code.

Another Big Move Out of the Shadows; First Citizens Bank, the nation’s 19th largest, poised to enter the Cannabis Market

A commentary on cannabis and hemp dated January 12, 2024 posted by First Citizens Bank on its website reflects the decision by the Bank to extend its very substantial hemp/CBD platform into the cannabis space.

A Closer Look at Cannabis

At the Nov. 30 Akron Roundtable event "A Closer Look at Cannabis," moderated by Andrew Meyer, deputy editor of news Ideastream Public Media, a varied group of panelists spoke about expected and potential outcomes and efforts of marijuana legalization.

Out of the Shadows - Cannabis Going Mainstream

BMD Phoenix Office Managing Partner, Stephen Lenn, recently discussed today's cannabis industry at an Akron Roundtable as part of their "Bringing it Home" series.