All of a sudden cannabis is big business in California. Big legal business. While it is legal business in California, it remains illegal under federal law. Due to this, financing for cannabis properties and businesses remains tight. While the banks may not be making cannabis related loans right now, there are private money options. We are able to assist with legal California cannabis loans. Through our network of relationships, we have the ability to assist with private money loans for cannabis property of various types.
The laws at the local level seem to be all over the place for cannabis businesses. There are licensing requirements at both the state and local level, and some areas are much more friendly to these types of businesses. There are cannabis manufacturing, distributing and cultivation licenses. Each type of business requires different approvals and different facilities.
In addition, the licensing is tied to specific property. Due to this, the cannabis business often goes hand in hand with the underlying real estate asset. That is what we specialize in, financing real estate assets.
With regards to cannabis financing, we can help finance not only operations that are fully licensed and operating, but also operations that are starting up. We can help finance the development of a property for cannabis use before income is being generated. We can even help at the early start up stage, prior to obtaining a conditional use permit for the property.
These cannabis loans in California are loan to value driven. Depending on the property type, the loan to value ratios can range from 50% to as high as 65% of the value of the property. For development, we can potentially structure loans based on a future value.
For those who have been in search of financing to move forward in this new industry, the private money options we can provide could be the leverage needed to succeed. Give us a call at 877 462 3422 and we would be happy to discuss your project and how we may be able to help you put together financing.
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