cannabis cultivation financing
FDIC-insured banks can’t bank you. The SBA can’t fund a state-licensed cultivation operation. Equipment leasing companies won’t write a contract on grow-room lighting or HVAC for a cannabis facility. I work with two cannabis-specialty lenders who provide cannabis cultivation financing for grow-facility build-out, lighting and HVAC, irrigation, extraction equipment, harvest-to-sale working capital, and owner-occupied cultivation real estate. One application, two real lenders, no wasted weeks pitching banks that were never going to say yes.
FDIC banks can’t fund cultivation. SBA can’t fund cultivation. I can.
Cannabis cultivation runs into the same federal wall every plant-touching operator hits, plus a few unique to growing the plant: massive CapEx, long crop cycles, and special-purpose facilities. Here is who can’t fund your cultivation operation and who can.
FDIC-Insured Banks
Federal deposit insurance creates federal compliance obligations. Almost no FDIC-insured bank will originate a cannabis loan, and many won’t even hold the deposits. Cultivators need real-time capital for utility bills, payroll, and harvest cycles, and FDIC banks can’t help. This is why cannabis cultivation financing exists entirely outside the FDIC banking system.
The SBA
The SBA is a federal agency, and federal law prohibits SBA-guaranteed loans from funding any business that touches the cannabis plant. SBA programs that work for greenhouse vegetable growers and farm equipment do not exist for cannabis cultivation, no matter how state-licensed your operation is.
Cannabis-Specialty Lenders
A small group of non-bank lenders has built underwriting and capital structures specifically for licensed cannabis operators. I work with two of them. They are the foundation of the cannabis cultivation financing I arrange. They understand crop cycles, harvest economics, and what a real grow-facility build-out costs.
Cannabis cultivation financing operates inside a framework defined by federal regulation, state oversight, and industry advocacy
The gap between cannabis cultivators and FDIC banks isn’t an opinion or a marketing line. It is a documented regulatory environment, and a real industry has grown up around it. Here are three authoritative sources that shape the cannabis cultivation financing landscape: the federal agency that classifies cannabis, the national industry trade association advocating for cultivators, and the coalition of state regulators that licenses and oversees the markets my lenders fund in.
Controlled Substances Act · Drug Scheduling
The DEA classifies cannabis as a Schedule I controlled substance. This is the federal classification that closes nearly every conventional financing door and creates the gap cannabis cultivation financing fills.
View DEA scheduling → National Cannabis Industry AssociationThe Largest U.S. Cannabis Trade Association
NCIA is the oldest and largest national trade association serving licensed cannabis businesses, including thousands of state-licensed cultivators. If you operate a grow, this is the primary advocacy and education body shaping the policy environment your cannabis cultivation financing exists inside.
Visit NCIA → Cannabis Regulators Association · CANNRAThe National Coalition of State Cannabis Regulators
CANNRA brings together cannabis regulators from 40+ states and territories. Because my cannabis cultivation financing lenders fund licensed states only, the state regulatory body in your state is the gatekeeper for your eligibility. CANNRA is the umbrella organization for that landscape.
Visit CANNRA →Six ways I fund a licensed cannabis cultivation operation
Cannabis cultivation financing is its own product set, not a bank product with a different label. Here is what the two cannabis-specialty lenders I work with actually fund for growers.
Cultivation Real Estate
Purchase or refinance owner-occupied cultivation buildings, greenhouses, and indoor grow facilities. Cannabis cultivation financing for special-purpose real estate is its own product category because traditional commercial lenders won’t underwrite zoning-locked grow assets.
Lighting And HVAC Financing
High-intensity LED and HPS lighting, climate control, dehumidification, and air-handling systems for indoor and greenhouse grows. The biggest single-line equipment expense in cultivation, and the one most equipment leasing companies won’t touch for cannabis.
Irrigation And Fertigation Systems
Drip irrigation, fertigation automation, water filtration, and nutrient delivery infrastructure. Asset-collateralized cannabis cultivation financing for the equipment that makes a commercial grow operate at scale.
Harvest-To-Sale Working Capital
Operating capital that bridges the gap between planting and the dispensary check clearing. Cultivators are profitable on paper and broke on cash flow simultaneously, and this is the cannabis cultivation financing product that solves it.
Cultivation Line Of Credit
Revolving cannabis cultivation financing for licensed growers. Draw what you need during harvest prep, repay as cash clears post-sale, draw again next crop cycle. Built for the seasonal rhythm of a grow operation.
Extraction And Processing Equipment
Hydrocarbon, CO2, ethanol, and solventless extraction equipment. If your cultivation operation also extracts, this is asset-collateralized financing for the processing side of the business.
Operate somewhere else in cannabis? Tap your business type
If you operate elsewhere in the cannabis supply chain, the products, qualifying picture, and lender story are different. These are the other pages in my cannabis cluster.
Cannabis Business Financing · Hub
The overview page covering retail, cultivation, wholesale, and cannabis real estate. Start here if you’re not sure which vertical you fit, or if you operate across multiple cannabis verticals.
See the cannabis hub →Dispensary Financing · Retail
Build-out, security and vault, POS systems, working capital, and owner-occupied dispensary real estate for licensed retail cannabis operators.
See dispensary financing →Cannabis Wholesale Financing · Distribution
Inventory financing, invoice factoring on dispensary receivables, working capital for licensed cannabis wholesalers and distributors selling on net terms.
See wholesale financing →Cannabis Real Estate Financing
Owner-occupied cannabis facilities: cultivation buildings, dispensary properties, processing labs. Special-purpose real estate that conventional lenders walk away from.
See cannabis real estate →Six cannabis cultivation financing situations I fund
Cannabis cultivation financing isn’t just for the operator with mature plants in the ground. The deals that close are often the ones nobody else is thinking about: the manager buying out the head grower, the operator opening a second canopy expansion, the new license-holder facing the lighting bill. Find your situation below.
Manager / Head Grower Buyout
You’ve run the cultivation operation for years. The owner is ready to exit and wants you to take it over. Cannabis cultivation financing for succession deals is real, even when banks won’t touch it. Tell me the deal.
Tell me about this situation →Canopy Expansion / Second Facility
You’re profitable in one licensed cultivation operation and ready to expand canopy or open a second facility. Cannabis cultivation financing for expansion requires lenders who underwrite your existing grow yields and operating history as the collateral, not just the new build. I have them.
Tell me about this situation →Competitor Acquisition
A competing licensed cultivator is for sale and you want to consolidate. Cannabis acquisition financing for cultivation is a specialty. The lender has to underwrite two operations, the license transfer, and the combined yield economics. Bring me the deal.
Tell me about this situation →New License Holder · Facility Build-Out
You won the cultivation license lottery or the merit-based application, and now you’re staring at a build-out bill for lighting, HVAC, irrigation, and security before you’ve harvested a single plant. Pre-revenue cannabis cultivation financing is harder than operating-cultivation financing, but my lenders consider strong license positions and collateral. Worth a call.
Tell me about this situation →Refinance Existing Cultivation Debt
You took expensive bridge debt or high-rate working capital to get the cultivation operation built, and now you’re profitable and stuck in a rate that bleeds margin. Cannabis cultivation refinance is one of the most common deals I look at. Tell me what you owe and to whom.
Tell me about this situation →Investor Funding A Cultivation Operation
You’re not the operator, you’re the capital. You want to back a licensed cultivator with debt instead of equity. I work both sides of investor-funded cultivation deals when the operator-and-investor structure is clean. Call to discuss.
Tell me about this situation →A licensed cannabis operator went to seven banks before calling me.
Every one of them said the same thing: “We don’t bank cannabis.” Two of them ended the call mid-sentence. The operator needed working capital, real estate, or equipment financing in a state where cannabis is legal and regulated, and they had real revenue, real licenses, and real operating history. None of that mattered to an FDIC-insured bank. I matched them to one of my two cannabis-specialty lenders, the file was reviewed by people who actually understand cannabis cultivation financing underwriting, and the operator got a real term sheet instead of a polite goodbye. That is the difference between calling a bank and calling me. Don’t Beg the Bank! Get funded instead.
First harvest was eight weeks out. The HVAC quote came in at $310,000.
The grow facility was state-licensed, fully built-out, and four weeks from flipping the lights on. The cultivator had bootstrapped most of the capital build, but the climate-control system was the line item that broke the budget. Eight weeks until first harvest. No HVAC meant no controlled environment meant no commercial yield. The HVAC contractor wouldn’t ship without 50% down. The cultivator’s bank wouldn’t underwrite cannabis equipment. Three equipment leasing companies passed before the cultivator even got to a quote.
I matched the file to one of my two cannabis-specialty lenders and structured a $310,000 cannabis cultivation equipment financing package covering the full HVAC, dehumidification, and air-handling buildout. Funded in seven business days. The HVAC shipped, the contractor installed on schedule, and the cultivator flipped the lights on time for the first crop cycle. The equipment is the collateral. The harvest is paying it down. Cultivation equipment financing is the answer when the lights are ready but the climate isn’t.
What it takes to get cannabis cultivation financing
Cannabis cultivation financing is its own underwriting world. Here is the honest picture of what it takes to qualify, so neither of us wastes time on a deal that won’t fly.
What helps you qualify
- A valid cultivation license issued by your state regulatory authority
- Operating in a state where cannabis cultivation is legal and regulated
- Real cultivation operating history with documented yields and revenue (12+ months preferred)
- Reasonable personal credit on the principals
- Owner-occupied cultivation real estate as collateral helps significantly
- Clean compliance record with state cannabis regulators
Straight talk on cannabis lending
- Cannabis cultivation financing costs more than conventional agricultural lending. The federal-illegality risk is priced in.
- I cannot fund unlicensed cultivation operators. Period.
- Terms vary by state. A grow deal in California prices differently than one in Oklahoma or Michigan.
- The two lenders I work with fund licensed states only. They will not touch federally illegal-only states.
- Specific rates, terms, and LTV are quoted per deal. Competitive industry rates, terms vary by state and deal.
- Pre-approval typically 3 to 5 business days depending on loan product, license verification, and state.
Apply For Cannabis Cultivation Financing
I personally review every submission. Two cannabis-specialty lenders, one application. I never text, I call you back directly.
Cannabis cultivators need a broker who actually has cannabis lenders
I am Kevin Kermeen, a nationwide commercial loan advisor. Cannabis cultivation financing is a vertical I built lender relationships for because the gap is real. Most brokers will take a cultivation call, shop it nowhere productive, and string you along for weeks. I will tell you on the first call whether your cultivation deal fits one of my two cannabis-specialty lenders, and if it doesn’t, I will tell you that too. I personally review every cannabis cultivation financing application, I call you directly, and I never text.
Don’t Beg the Bank! Get funded instead.
Cannabis Cultivation Financing FAQ
Can I get an SBA loan for my cannabis cultivation operation?
No. The SBA is a federal agency, and federal law prohibits SBA-guaranteed loans from funding any business that touches the cannabis plant directly, including state-licensed cultivation operations. I never quote SBA programs for cannabis cultivation financing because they do not exist for cannabis. My cannabis cultivation financing solutions come from non-bank, non-SBA capital sources built specifically for licensed cannabis operators.
What states do you fund cannabis cultivation operations in?
My two cannabis-specialty lenders provide cannabis cultivation financing to licensed cannabis operators in states where cannabis is legal and regulated. They do not fund operators in states where cannabis is not licensed at the state level. Specific state coverage varies by lender and product, which I confirm on our first call once I know your state.
What does cannabis cultivation financing cost?
Cannabis cultivation financing costs more than conventional commercial lending. Lenders price in the federal-illegality risk, the limited secondary market for cannabis assets, and the regulatory complexity unique to cannabis cultivation. I quote competitive industry rates for cannabis cultivation financing, and terms vary by state, license type, deal size, and collateral. I will give you real numbers once I know your deal.
Do you fund cannabis cultivation startups with no operating history?
Startup cannabis cultivation financing is significantly harder than operating-stage cannabis cultivation financing. My two lenders generally want to see documented cultivation revenue and at least 12 months of licensed operating history, though strong collateral and exceptional credit can change that calculation. New license-holders with capital and a clean state record sometimes qualify for build-out facilities. I will tell you honestly on the first call whether your startup fits.
Can you fund a build-out before we open?
Yes, this is one of the more common cannabis cultivation financing situations I see. New license-holders staring at a build-out bill before they’ve earned revenue. My two cannabis-specialty lenders look at build-out financing when the license is solid, the location is locked in, and the operator has skin in the game. Pre-revenue underwriting is harder than operating underwriting, but it is real for the right deal.
Can I get cannabis cultivation financing to buy out my boss or the current owner?
Yes, this is a real and increasingly common type of cannabis cultivation financing deal. Manager and employee buyouts of licensed cannabis cultivation operations are something my two cannabis-specialty lenders look at, especially when the buyer has documented operating history inside the business, the seller is willing to provide a transition period, and the deal structure is clean. Bring me the deal terms and I will tell you on the first call whether it fits.
Can you fund a cannabis cultivation acquisition where I’m buying a competitor?
Yes. Competitor acquisitions are one of the harder cannabis cultivation financing deals because the lender has to underwrite two operations, the combined entity, and the regulatory implications of the license transfer. My two cannabis-specialty lenders do this work. Expect a longer underwriting timeline than a single-location deal, more documentation, and a deeper conversation about post-acquisition operating plan and license-transfer timing.
I’m trapped in expensive cannabis bridge debt. Can you refinance me out of it?
This is one of the most common cannabis cultivation financing requests I see. Operators take expensive bridge or high-rate working-capital debt to get the operation funded, then get stuck paying it down at rates that bleed margin once they’re profitable. Cannabis refinance is real if your operating history justifies a better lender, the existing debt is in good standing, and the new deal makes financial sense for both sides. Tell me what you owe, who you owe it to, and what your revenue looks like.
What does it cost to work with you?
Nothing up front to me. I am paid a broker fee by the lender at closing, never added to your loan amount or rate.* Some partner lenders may require a commitment deposit when you accept their term sheet, which is separate from any fee to me and disclosed before you commit.
Cannabis cultivation financing from cannabis-specialty lenders. One application, real answers.
Federal law locked the banking system against cannabis cultivation. It did not lock the entire lending system. I provide cannabis cultivation financing through two cannabis-specialty lenders inside the gap. One application, two real lenders, a real answer.
Disclosures. Cannabis remains federally illegal under the Controlled Substances Act. Financing referenced on this page applies only to cannabis businesses operating in compliance with applicable state law in jurisdictions where cannabis is licensed and regulated. Nothing on this page is legal advice; consult cannabis counsel licensed in your state. Loan amounts, rates, terms, and funding speed reflect typical cannabis-specialty lender programs and are not guarantees; they vary by lender, state regulatory framework, license type, creditworthiness, collateral, and deal structure. Not all applicants are approved.* No upfront fees refers to fees payable to 75BizLoans.com; I am compensated by the lender at closing. Some partner lenders may require a commitment fee or deposit upon your acceptance of their term sheet; any such fee is the lender’s, is disclosed before you commit, and is separate from any compensation to me. Final eligibility, rate, term, and structure are determined by the lender. This is not a commitment to lend. 75BizLoans.com does not provide SBA loans, FDIC-insured bank products, or any federally-guaranteed financing for cannabis businesses because such financing does not exist for plant-touching cannabis operators under current federal law.