{"id":480,"date":"2020-10-30T00:02:16","date_gmt":"2020-10-30T04:02:16","guid":{"rendered":"https:\/\/jasdeepsingh.net\/?p=480"},"modified":"2021-04-20T10:44:22","modified_gmt":"2021-04-20T14:44:22","slug":"the-safe-act-banking-safety-for-cannabis-hemp-businesses","status":"publish","type":"post","link":"https:\/\/jasdeepsingh.net\/the-safe-act-banking-safety-for-cannabis-hemp-businesses\/","title":{"rendered":"The SAFE Act – Banking Safety for a Growing Industry"},"content":{"rendered":"
As it stands, cannabis is still considered a class one drug<\/a> by federal law. This makes receiving a bank loan very difficult for new businesses in this industry. Banks are notably risk-averse, and they are still hesitant about supporting businesses that sell cannabis products.<\/p>\n This line of judgment extends even to cannabis derivative businesses that have proven themselves to be profitable. Cannabis products presently make up a $12 billion industry, including sales of hemp and CBD oil. Despite this industry’s revolutionary growth in recent years, they have few banking options, making the industry harder to navigate.<\/p>\n However, the SAFE Banking Act could change all of this and make it easier for banks to support cannabis brands. Here’s what you need to know about this important policy.<\/p>\n To truly make progress for both banks and the cannabis industry, there needs to be federal regulation. This is what the SAFE Banking Act of 2019<\/a> aims to achieve. The terms of this bill state that federal regulators will not fine or persecute depository institutions, or banks, for supporting the sale of cannabis products in states where cannabis is legal.<\/p>\n The bill would essentially protect both banks and funded business owners from federal intervention. For banks, the risk of associating with businesses that sell cannabis products is significantly reduced. This support would encourage banks to offer extended credit lines for established businesses and allow new businesses to acquire the loans they need to launch a brand and encourage this profitable industry’s growth.<\/p>\nWhat is the SAFE Banking Act?<\/h3>\n