OPEN LETTER: DEAR BANKS…

Dear Banks, Credit Unions, & Financial Institutions,

You love to talk about community.
You love to talk about small business.
You love to talk about growth, inclusion, and local economies.

But when it comes to New York’s legal cannabis industry, you disappear.

These businesses are licensed by the state. Regulated. Taxed aggressively. Audited constantly. They employ New Yorkers, lease New York property, and generate real revenue in real neighborhoods.

Yet banks still treat them like radioactive waste.

You’ll take their deposits, sometimes.
You’ll cash their checks, carefully.
But lending? Mortgages? Lines of credit? That’s where you draw the line.

So, cannabis operators pay more.

They lease when others buy.
They rely on private lenders rather than institutional lenders.
They carry cash because you won’t carry them.

That isn’t risk management. That’s selective participation.

You finance bars that overserve.
You finance liquor chains that fuel addiction.
You finance industries that collapse and get bailed out.

But a licensed cannabis business with state approval and documented revenue?

Too risky.

New York didn’t legalize cannabis halfway. The banking system did.

Until you step up, this market stays distorted. Growth favors the already-wealthy. Equity applicants get squeezed. Small operators stall out while larger players muscle through with private capital.

Cannabis doesn’t need sympathy.
It needs fair access.

Until then, don’t call this a free market.
Call it what it is: a locked door with a welcome sign taped to the glass.

Signed,

An industry that’s done asking politely

Cynthia Saarie, CEO

BestCopyNow.com

#banking #cannabisbanking #creditunions #financial #bestcopynow

The Economic Impact of Exclusionary Banking Practices

The exclusion of the legal cannabis industry from traditional banking services has significant economic implications. By denying access to essential financial services, banks hinder the growth potential of licensed cannabis businesses, which could otherwise contribute to local economies through job creation and tax revenue.

For instance, a report from the New York State Cannabis Control Board indicates that the legal cannabis market could generate millions in tax revenue if adequately supported. However, without banking access, many operators are forced to operate in cash, limiting their ability to scale and invest in their businesses, ultimately stifling economic growth in the region.

Regulatory Challenges Faced by Cannabis Businesses

Cannabis businesses in New York navigate a complex regulatory landscape that complicates their banking needs. The legal status of cannabis at the state level contrasts with its classification as a Schedule I substance federally, creating confusion and risk for financial institutions considering serving this market.

As a result, many banks opt to avoid cannabis clients altogether, fearing repercussions from federal regulators. This hesitance creates a barrier for legitimate businesses trying to comply with state regulations while being denied basic banking services that other industries take for granted.

Call for Equitable Banking Solutions

The legal cannabis industry deserves equitable access to banking services that align with its legitimate status in New York. Advocating for fair banking practices is crucial for fostering a thriving cannabis market that can operate within the law and contribute positively to the community.

Financial institutions are urged to develop tailored banking solutions that address the unique challenges faced by cannabis operators. By creating specialized accounts and services that comply with state regulations, banks can support the growth of this emerging industry while also benefiting from the economic opportunities it presents.

The Role of Advocacy in Changing Banking Practices

Advocacy plays a critical role in pushing for changes in how banks treat the cannabis industry. Organizations and industry leaders must collaborate to raise awareness about the importance of inclusive banking practices and the potential benefits for both banks and cannabis businesses.

By engaging in dialogue with financial institutions and regulatory bodies, advocates can help dismantle the stigma surrounding the cannabis industry. This collective effort is essential for creating a more equitable financial landscape that recognizes the legitimacy of licensed cannabis operations in New York.