cannabis real estate financing
FDIC-insured banks can’t write a mortgage on a cannabis building. The SBA can’t fund cannabis-occupied real estate. Conventional commercial real estate lenders walk away the moment they hear what the tenant or owner-occupant actually does. I work with two cannabis-specialty lenders who provide cannabis real estate financing for owner-occupied dispensaries, cultivation facilities, processing labs, and licensed cannabis properties. One application, two real lenders, no wasted weeks pitching banks that were never going to say yes.
FDIC banks can’t write the loan. SBA can’t either. I can.
Cannabis real estate runs into the same federal wall every plant-touching property hits, plus a few unique to the asset class: zoning-locked locations, limited secondary market, and special-purpose buildings. Here is who can’t write a mortgage on your cannabis property 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. Owner-occupied cannabis real estate financing is one of the highest-friction asset classes in commercial lending, and FDIC banks can’t help. This is why cannabis real estate 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 504 programs that work for owner-occupied conventional commercial real estate do not exist for cannabis-occupied buildings, no matter how state-licensed the operation inside 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 real estate financing I arrange. They understand zoning restrictions, special-purpose buildouts, and what a dispensary or cultivation building is actually worth as collateral.
Cannabis real estate financing operates inside a framework defined by federal regulation, state oversight, and industry advocacy
The gap between cannabis property owners 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 real estate financing landscape: the federal agency that classifies cannabis, the national industry trade association advocating for cannabis property owners, 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 real estate 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 operators of dispensary, cultivation, and processing real estate. If you own or are buying cannabis property, this is the primary advocacy and education body shaping the policy environment your cannabis real estate 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 real estate financing lenders fund licensed states only, the state regulatory body in your state is the gatekeeper for your property eligibility. CANNRA is the umbrella organization for that landscape.
Visit CANNRA →Six ways I fund licensed cannabis real estate
Cannabis real estate 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 owners of cannabis-occupied property.
Dispensary Real Estate Purchase
Purchase financing for owner-occupied retail dispensary buildings. Cannabis real estate financing for retail properties accounts for the zoning lock, the cash-business operating model, and the limited resale market.
Cultivation Facility Real Estate
Purchase or refinance owner-occupied cultivation buildings, greenhouses, and indoor grow facilities. Cannabis real estate financing for grow properties underwrites special-purpose HVAC and electrical buildouts as part of the asset value.
Processing And Extraction Lab Real Estate
Purchase or refinance owner-occupied processing labs, extraction facilities, and manufacturing buildings for licensed cannabis operators. Special-purpose cannabis real estate financing for assets most CRE lenders won’t underwrite.
Cannabis Real Estate Refinance
Refinance existing cannabis property debt into better terms. If you bought your dispensary, grow, or processing building with high-rate bridge debt, this is the cannabis real estate financing product that takes you to a permanent loan.
Cannabis Construction-To-Permanent
Construction financing for new-build cannabis facilities that rolls into permanent cannabis real estate financing once the building is complete and the operation is up and running. One transaction, one closing, one rate to manage.
Cash-Out Refinance On Cannabis Property
Pull equity out of an owner-occupied cannabis building to fund expansion, working capital, or acquisitions. Cannabis real estate financing structured as a cash-out refi unlocks capital trapped in real estate.
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 Cultivation Financing · Growers
Indoor, greenhouse, and outdoor cultivation. Grow-facility build-out, lighting, HVAC, irrigation, extraction equipment, and the harvest-to-sale cash gap.
See cultivation 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 →Six cannabis real estate financing situations I fund
Cannabis real estate financing isn’t just for the operator already owning property. The deals that close are often the ones nobody else is thinking about: the operator going from rent to own, the buyer acquiring an existing cannabis-occupied building, the developer building ground-up for cannabis use. Find your situation below.
Operator Going From Rent To Own
You’ve been leasing the dispensary, grow, or processing facility for years and want to buy it. Cannabis real estate financing for owner-occupied conversion is one of the highest-quality deals I see. Tell me the building, the price, and your operating history.
Tell me about this situation →Acquiring Existing Cannabis Property
A cannabis-occupied building is for sale and you want to buy it as the operator or as an investor. Cannabis real estate financing for acquisitions requires lenders who can underwrite both the property and the cannabis use. I have them.
Tell me about this situation →Ground-Up Cannabis Construction
You own the land and you want to build a new dispensary, cultivation facility, or processing lab from scratch. Cannabis construction-to-permanent real estate financing is real for the right deal, the right location, and the right operator. Worth a call.
Tell me about this situation →Refinance Existing Cannabis Mortgage
You bought the cannabis building with expensive bridge debt or hard-money debt and now you’re operating profitably and stuck in a rate that bleeds margin. Cannabis real estate refinance is one of the most common deals I look at. Tell me what you owe and to whom.
Tell me about this situation →Cash-Out Refi For Expansion Capital
You own the cannabis building free-and-clear or with significant equity, and you want to pull capital out to fund expansion, a second location, or working capital. Cash-out cannabis real estate financing is a real path. Bring me the property details.
Tell me about this situation →Investor Funding A Cannabis Building
You’re not the operator, you’re the capital. You want to own the cannabis-occupied building and lease it to a licensed operator. I work both sides of investor-funded cannabis real estate deals when the operator-and-landlord 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 real estate 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.
Five years renting. The landlord put the building up for sale. The price was $1.8 million.
The dispensary had operated out of the same building for five years. Profitable, state-licensed, clean compliance record. The landlord had collected rent through every market cycle, watched the dispensary fund his retirement check by check, and now wanted to sell. He offered the dispensary first right of refusal at $1.8 million. The owner had eight weeks to close. Every conventional commercial real estate lender walked the moment they heard the building’s use. The dispensary owner’s bank wouldn’t write a mortgage on a cannabis-occupied building, even with five years of paid rent receipts proving the tenant’s ability to pay.
I matched the file to one of my two cannabis-specialty lenders and structured a $1.8 million cannabis real estate purchase financing package against the dispensary’s operating history and the building’s appraised value. Funded in twenty-two business days. The owner went from tenant to owner-occupant in two months. The mortgage payment is lower than the previous rent. The dispensary now owns the building outright as a long-term asset. Cannabis real estate financing is the answer when the building is the right one but the bank isn’t.
What it takes to get cannabis real estate financing
Cannabis real estate 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 cannabis operating license issued by your state regulatory authority
- Operating in a state where cannabis is legal and regulated
- Real cannabis operating history with documented revenue (12+ months preferred)
- Property already zoned for cannabis use or in a confirmed cannabis-eligible zone
- Reasonable personal credit on the principals
- Clean compliance record with state cannabis regulators
Straight talk on cannabis lending
- Cannabis real estate financing costs more than conventional commercial real estate lending. The federal-illegality risk is priced in.
- I cannot fund unlicensed cannabis property purchases. Period.
- LTV ratios are lower for cannabis real estate than for conventional commercial real estate. Expect to bring meaningful equity to the deal.
- Terms vary by state. A cannabis property deal in California prices differently than one in Oklahoma or Michigan.
- 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 Real Estate Financing
I personally review every submission. Two cannabis-specialty lenders, one application. I never text, I call you back directly.
Cannabis property buyers need a broker who actually has cannabis CRE lenders
I am Kevin Kermeen, a nationwide commercial loan advisor. Cannabis real estate financing is a vertical I built lender relationships for because the gap is real. Most brokers and commercial real estate lenders will take a cannabis property call, shop it nowhere productive, and string you along for weeks. I will tell you on the first call whether your cannabis real estate 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 real estate financing application, I call you directly, and I never text.
Don’t Beg the Bank! Get funded instead.
Cannabis Real Estate Financing FAQ
Can I get an SBA loan for my cannabis real estate 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 real estate operations. I never quote SBA programs for cannabis real estate financing because they do not exist for cannabis. My cannabis real estate financing solutions come from non-bank, non-SBA capital sources built specifically for licensed cannabis operators.
What states do you fund cannabis real estate operations in?
My two cannabis-specialty lenders provide cannabis real estate 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 real estate financing cost?
Cannabis real estate 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 real estate. I quote competitive industry rates for cannabis real estate 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 real estate startups with no operating history?
Startup cannabis real estate financing is significantly harder than operating-stage cannabis real estate financing. My two lenders generally want to see documented real estate 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 ground-up cannabis construction?
Yes. Ground-up cannabis construction financing is one of the more involved cannabis real estate financing deals I work on. The lender has to underwrite the land, the build, and the eventual operating tenant or owner-occupant. Cannabis construction-to-permanent loans are real for the right deal, the right location, and the right operator.
Can I get cannabis real estate financing to buy out my boss or the current owner?
Yes, this is a real and increasingly common type of cannabis real estate financing deal. Manager and employee buyouts of licensed cannabis real estate 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 real estate acquisition where I’m buying a competitor?
Yes. Competitor acquisitions are one of the harder cannabis real estate 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 real estate 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 real estate financing from cannabis-specialty lenders. One application, real answers.
Federal law locked the banking system against cannabis real estate. It did not lock the entire lending system. I provide cannabis real estate 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.