Is this eligible for SBA financing?

by a searcher

1 year ago

Hi Team, I have been looking at a packaging business within the cannabis category. Does anyone here have experience in this space? Will this be just dead on arrival with SBA lenders? Curious to hear the perspective of any SBA lenders or brokers on here. 

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lender from Eastern Illinois University

Although Cannabis is still illegal on the Federal Level, the FDIC has approved some lenders to provide Cannabis financing, so there are traditional banks providing that financing. However, it is a tightly controlled program. However, the SBA has not approved cannabis for financing via the program, so you cannot do any SBA loan around cannabis. In fact, I had a client who was not directly dealing in cannabis but their priority customers were in the industry, and the SBA (not the lender) denied the loan because of the affiliation.

1 year ago | like reply | 0 likes

lender

DOA is a good way of putting it. I believe that cannabis is illegal on the federal level and would be not be eligible for an SBA deal.

1 year ago | like reply | 0 likes

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