Let’s be blunt, talking cannabis business and banking is still often perceived as taboo by many but it should be far from off limits when considering risk amongst financial institutions. Part of the uncertainty around accepting, working with, and even discussing work with marijuana-related businesses (MRBs) is that this particular product is still considered illegal by the federal government, and while state exceptions may vary, they’re far from making this a joint decision.
Even though MRBs currently have limited banking power, it is still anticipated that sales will continue on a path of steady growth having MRBs rolling in the green. Growth predictions estimate legal marijuana sales to reach $30 billion by 2025.
As a point of clarification, generally there’s no difference between cannabis and marijuana, and the two terms are often used to describe the same thing. While cannabis describes cannabis products in general, marijuana specifically refers to cannabis products that are made from the dried flowers, leaves, stems, and seeds of the cannabis plant. For our purposes, we’ll be using the two terms interchangeably.
What are MRBs?
Viewing MRBs simply as an entity that has a direct connection with the product is an oversimplification. MRBs include entities that cultivate marijuana as well as processors, packagers, and anyone related to the transportation and dispensing of the product.
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