Debra BorchardtBanking has always been a challenge within the cannabis industry due to the nature of the product being federally illegal. Despite the big four banks feeling queasy about banking for illegal companies, some financial institutions are still willing to take the risk.
This week, the New York Office of Cannabis Management released a Cannabis Banking Directory that lists banks and credit unions that can work with cannabis companies. The directory, created by the Social and Economic Equity (SEE) team, is available on the OCM website. The OCM said in a statement that it aims to streamline the connection between licensed cannabis businesses and supportive financial institutions.
The statement said,
The lack of accessible, compliant financial services has long been a challenge for licensed operators, complicating essential operations and transparency. The Cannabis Banking Directory addresses these issues by bridging the gap between cannabis entrepreneurs and banks and credit unions that understand the unique needs of the industry.
The OCM stated that the list does not constitute endorsement, support, or recommendation, by the regulator.
The list includes these organizations:
- Southern Chautauqua Federal Credit Union
- Suffolk Credit Union
- Hanover Bank
- Jonestown Bank & Trust Co. (JBT) in Pennsylvania
- National Bank of Coxsackie
- Dart Bank
- Stearns Bank N.A.
- AmeriCU Credit Union
- Valley Bank in New Jersey
- Ponce Bank
In 2021 when New York passed its state cannabis law, it established a social and economic equity (SEE) program to incentivize participation for individuals disproportionally impacted by cannabis prohibition through the implementation of the SEE Plan. 50% of all adult-use licenses to distinct SEE groups including:
- individual or individuals from a community disproportionately impacted by cannabis prohibition
- a minority-owned business
- a women-owned business
- distressed farmers
- service-disabled veterans.
