Filling Credit Risk Gaps for Cannabis Businesses

Tracy Gallegos, partner and team lead of the Duane Morris Cannabis Industry Group,  is quoted in American Banker about CTrust’s recently launched Cannabis Trust Score and its impact on the industry.  […]

“Until there’s a rescheduling, obtaining traditional banking loans is going to be a significant hardship for plant touching operators,” said  Gallegos, referring to cannabis’ classification as a Schedule 1 controlled substance, which exposes banks to potential money laundering investigations, which prevents most banks from lending to cannabis businesses. […]

“Having a company like CTrust provide a credit score is an indicator of credit worthiness, but it won’t do anything to solve any of the issues that the banks are facing in terms of the banks being penalized for engaging in business with what the federal laws still consider an illegal activity.”

Read the full article on the American Banker website.

© 2009- Duane Morris LLP. Duane Morris is a registered service mark of Duane Morris LLP.

The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

Proudly powered by WordPress