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Cannabis Business Loans

Updated: Jul 11, 2023

Courtesy of the Scotsman Guide

What is a cannabis loan?

With more states legalizing medical and recreational marijuana each year, the need for financing cannabis business operations has grown. Cannabis loans are available to finance dispensaries, farming and growing facilities, cannabis product manufacturing facilities or other properties related to the marijuana industry. Cannabis business loans are also available to borrowers who wish to obtain marijuana business startup loans, or funds for equipment or operational finances.

However, because of the legal complications and thorny regulations that come with the cannabis business, finding funding options for marijuana-related companies and real estate can be tricky.


Can I get a bank loan for a cannabis business?

Depository institutions are increasingly becoming more willing to do business with cannabis businesses. A report from the U.S. Treasury noted that 553 banks were providing banking services to marijuana-related businesses in the third quarter of 2019, up from 375 in the fourth quarter of 2018.

Still, it remains very difficult to get financing for cannabis business operations and marijuana-related real estate. Federally chartered banks, credit unions and traditional lenders generally cannot offer marijuana loans because marijuana remains a Schedule I controlled substance on a federal level. Despite this designation, more than 10 states have legalized both recreational and medical marijuana and in over 20 more, medical marijuana is legal.

How do I get financing for a marijuana business?

Due to a scarcity of funding from banks, there is a need for alternative financing when it comes to marijuana business loans and real estate loans. Fortunately, in states where marijuana has been legalized for medical or recreational use, numerous private lenders like ROC Financial Solutions and non-banks have stepped up to offer loan products to “green” businesses.

What are common types of cannabis loans?

  • Recreational Dispensary — While commercial real estate lenders have so far been reticent to fully embrace the dispensary market, private debt or equity financing for retail dispensaries of recreational marijuana is starting to grow. Lenders will look for a track record of solid, consistent revenue. Use the Lender Search engine above to find a lender. Make sure to select “Retail” under the “Property Type” dropdown and “Cannabis – Recreational Dispensary” under the “Retail” dropdown.

  • Medical Dispensary — The same as above, but for dispensaries of medical marijuana. Find lenders for this property type by selecting “Medical/Healthcare” under the “Property Type” dropdown and “Cannabis – Medical Dispensary” under the “Retail” dropdown.

  • Grow Operation — Many lenders are surfacing for the funding of facilities where marijuana is grown and cultivated. These can be financed through private, hard money products or via some commercial real estate lenders willing to offer short-term mortgages or bridge loans. Select “Agricultural” under the “Property Type” dropdown and “Cannabis Grow Operation” under the “Agricultural” dropdown.

  • Manufacturing Facility — As with grow operations, some commercial real estate lenders are increasingly becoming willing to fund facilities that manufacture cannabis products. Of course, private funding is also available. Find a lender by selecting “Industrial” under the “Property Type” dropdown and “Cannabis Manufacturing” under the “Industrial” dropdown.

  • Equipment Loans and Leasing — If you need capital to buy new equipment, loans and leasing are available for acquiring and upgrading various cannabis growing and processing materials, including lighting, HVAC, CO2 extraction, irrigation and more.

  • Business Loans — Since banks don’t lend to cannabis businesses, many lenders who offer real estate and equipment-related loans also lend to entrepreneurs who need capital for non-real estate purposes, such as inventory, marketing, payroll and business expansion. Funding is available via short-term loans, revolving lines of credit and cash advances.

Which lenders offer cannabis loans?

Cannabis business owners do not have the same borrowing options as other business owners. However, depending upon the circumstances, a ROC Financial Solutions may be able to get a Prime Commercial cannabis loan, Construction/Renovation cannabis loan or, more often, a hard money cannabis loan. We have options to help you get financing. Use our funding services to find a loan for your marijuana business and marijuana-related real estate needs.

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