Worcester Business Journal

wbjournal.com | October 3, 2022 | Worcester Business Journal 15 B A N K I N G & F I N A N C E F O C U S Plus two 1 8 7 0 – 2 0 2 2 of service YEARS Celebrating a 152 year legacy of service to the Central Massachusetts communit y. Member FDIC/Member DIF Equal Housing Lender · NMLS #583135 Visit www.unibank.com, call 800.578.4270, or stop by our 24 Gold Star Boulevard branch in Worcester. We're dedicated to the community and are here to support all your banking needs. because of the level of complexity." It goes beyond directly working with pot purveyors. For example, some banks won't open accounts for employees of marijuana companies because of the risk, and other companies working with cannabis retailers – like landlords who want to lease space to one – can sometimes run into issues. "ere was a CEO we closed on a deal with, and a week before closing, he called me and said, 'I'm walking into Wells Fargo; they said I have 30 days to leave. Can you get me a mortgage?'" Daley said. "He was high up in the business and had that safety net, but for the people like processing workers and manufacturing workers that don't have a couple of million lying around trying to provide for their family, we do what we can to respond and get a referral to the right people." Equal access Mass. law requires CCC to structure the industry so it benefits communities impacted by the War on Drugs the most. A new law signed in August by Gov. Charlie Baker includes language to move that initiative forward. e 2022 cannabis reform bill establishes a trust fund for disenfranchised entrepreneurs, funded by 15% of tax revenue generated through adult-use sales. e fund, according to CCC, lowers one of the primary barriers to entry into the cannabis industry: money. is fund is going to be a huge help for marijuana entrepreneurs from communities who were most harmed by the War on Drugs, Lindsay said. It's also an important extension of financing options in a shallow market, she said. Funding from private investors usually comes with a huge amount of interest, and some small companies will sometimes look to larger, multi-state operators as a survival tactic; but that gives the bigger company a lot of the power while pushing the small business owner out, she said. "It's very difficult for people to wade through what is good and what is bad. ey take on money that is detrimental to them and business," Lindsay said. e fund is an important step towards creating strong futures in the marijuana industry for families of color, she said. "We wanted this money from the beginning, as we were trying and fighting for and building an equity program," she said. "If they don't have the money, they won't move forward." Cannabis firms deserve banking, too Marijuana has been legal to sell for both medical and adult-use purposes in Massachusetts since 2016, and cannabis is legal in some form in all but four states. However, because marijuana remains illegal federally, as a Schedule 1 drug, it is very difficult for banks to provide financial services to cannabis companies without risking their standing with the Federal Deposit Insurance Corp. When polled online, nearly 9 out of 10 WBJ readers said banks should be allowed to provide financial services to cannabis businesses. F L AS H P O L L Should banks be able to provide financial services to legally licensed marijuana companies? Yes. 88% No. 12% COMMENTS "I work in a bank, and we can do business accounts and services but no lend- ing at this point. Many want to own their own buildings, which is not allowed right now." "Consumers are suffering (paying extra banking fees) because of these disjointed regulations." W

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