Safe Harbor Financial (NASDAQ: SHFS), a financier for the regulated cannabis industry, has announced the formal introduction of its new small business line of credit program, which features a launch of new loans to three Colorado-based operators. These recipients are long-time clients of the Golden-based business.
“We’re pleased to be able to offer our longstanding clients access to lines of credit at reasonable terms, an opportunity that is often not readily available to cannabis businesses,” said Sundie Seefried, CEO of Safe Harbor Financial.
In recent years, the demand from small and mid-sized cannabis businesses has been increasing. These enterprises are often overlooked by traditional financial institutions, even those lending to larger counterparts within the cannabis sector. The small business line of credit program is aimed at addressing this gap, representing Safe Harbor’s devotion to the capital needs of the full cannabis ecosystem.
The three new lines of credit were offered at standard rates, without the necessity of real estate collateral. This approach is a significant departure from many alternative cannabis industry financing sources, relying instead on an adaptable set of underwriting standards. All the funding recipients are current clients of Safe Harbor Financial.
The financial service provider offers compliance, monitoring, and validation services to financial institutions that bring traditional banking services to cannabis, hemp, CBD, and ancillary operators.
Since inception, Safe Harbor has facilitated over $21 billion in deposit transactions for businesses operating in more than 41 states and US territories with regulated cannabis markets. Its methods meet Bank Secrecy Act obligations in accordance with FinCEN guidance on cannabis-related businesses.