Safe Harbor Financial, a fintech provider for the regulated cannabis and hemp sectors headquartered in Golden, has announced a “transformational” amendment to its partnership with Arvada-based Partner Colorado Credit Union (PCCU). The deal significantly tilts the economic scales in Safe Harbor’s favor and extends the duo’s collaboration through at least 2031.
The restructuring is designed to convert existing risk management capabilities into immediate cash flow while slashing operational overhead. The agreement demonstrates a deepened commitment between the two entities, providing Safe Harbor with a more aggressive path toward profitable growth.
The amendment introduces three primary pillars of financial improvement for Safe Harbor:
- Significant Revenue Lift: Safe Harbor’s share of loan interest income will jump from approximately 37% to 65%. This 75% increase is expected to generate an additional $9 million over the life of the agreement without requiring new cash outlays.
- Operational Cost Savings: The company will transition from a fixed-fee structure to a graduated fee model for asset hosting. This is expected to save the company $250,000 annually—a figure that could scale to $600,000 as PCCU’s deposit base expands.
- Retroactive Capital: The agreement is backdated to October 1, 2025, resulting in a one-time retroactive payment of roughly $400,000 to Safe Harbor.
A central component of the new deal involves Safe Harbor indemnifying up to 65% of potential net losses on defaulted loans. While this increases the company’s liability on paper, leadership remains confident; to date, PCCU has reported zero defaults on loans issued through the platform, validating Safe Harbor’s underwriting standards.
“Safe Harbor’s amended agreement with PCCU is a fundamental transformation of our business model that removes growth barriers and positions us for profitable expansion,” said Terry Mendez, Chief Executive Officer of Safe Harbor Financial. “We are converting non-cash risk exposure into substantial cash revenue and cost savings.”
The extension of the agreement through 2031—with automatic two-year renewals thereafter—underscores PCCU’s reliance on Safe Harbor’s proprietary technology. In a sector defined by complex regulatory hurdles, PCCU CEO Douglas Fagan praised Safe Harbor’s “unmatched expertise” and “risk management capabilities.”
Since its inception, Safe Harbor has facilitated over $26 billion in transactions across 41 states, cementing its role as a critical bridge between the cannabis industry and traditional financial systems.
Source: Press Release
