Safe Banking Act Could Open Opportunities in Cannabis Investment

The cannabis industry is growing rapidly, but for real estate owners, working with cannabis businesses still poses significant risk. Cannabis-occupied real estate has limited access to capital as well as some uncertainty around collection of rent and other income due to the federal illegality of the business. The Safe Banking Act could help to mitigate the risk by prohibiting regulators from penalizing banks and other lenders from providing banking services to a legitimate cannabis-related business.

“Cannabis tenant limit the landlord’s ability to refinance the property. This can vary from landlord to landlord, depending on if there is financing on the property and the timing of when they are planning to refinance,” Matte Namer, founder and CEO of Cannabeta Realty, tells GlobeSt.com.