Cannabis Law Attorney in San Francisco, California

When it comes to securing financing, what challenges do those in the cannabis and hemp business face?

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So, when it comes to securing financing
in the cannabis and hemp industries, the
challenges that you’re going to face
have to do with the legal and regulatory
barriers. Obviously, the federal
illegality problem, but more than that,
the lack of access to traditional
financing, including reluctance from
investors because of legal risks and
regulatory uncertainties and also high
interest rates. Cannabis businesses that
do secure loans often face higher
interest rates compared to other
industries due to perceived risks.

San Francisco, CA cannabis and hemp lawyer Shay Aaron Gilmore talks about securing financing and the challenges those in the cannabis and hemp business face. He explains that securing financing in the cannabis and hemp industries presents unique challenges due to legal and regulatory barriers. While federal illegality remains a significant issue, businesses also face limited access to traditional financing and investor reluctance driven by legal risks and regulatory uncertainties. Additionally, cannabis businesses that do obtain loans often encounter higher interest rates compared to other industries, reflecting the perceived risk associated with the sector.

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