The U.S. cannabis industry faces significant financing challenges, requiring between $65.6 billion and $130.7 billion in growth capital over the next decade. Traditional lending has been limited due to complex regulatory environments, high business risks, and lack of standardized credit evaluation. Financial institutions are gradually becoming more willing to engage with cannabis businesses, but face unique obstacles such as lower loan-to-value ratios, limited collateral options, and exclusion from Small Business Administration loans. Potential 2025 regulatory developments, including marijuana rescheduling hearings and Farm Bill updates, could impact the industry’s lending landscape. Fintech solutions and a growing recognition of the industry’s professionalism are helping to normalize cannabis lending, with the ultimate goal of providing sustainable financial support to a complex and evolving market.

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