Florida Medical Marijuana Businesses Get A New Banking Option
Marijuana industry businesses have struggled to find reliable banking options, due to the federal government's stance on cannabis. Because cannabis is still listed as schedule 1 drug, none of the national banks are of much use to marijuana entrepreneurs.
The feds stance on marijuana has thrown a wrench into everyone trying to make a living selling cannabis. Each dispensary practically needs cash to start up and begin processing marijuana for sale. Not to mention, maintaining their business and trying to scale up without having bank business loans available, means millions of dollars out of pocket, for marijuana providers.
In 2018, over 130,000 patients have already been approved for medical marijuana in Florida. With over 500,000 predicted to be in the registry by 2019, and recreational marijuana on the 2020 horizon, there's big business happening in Florida's Green Rush!
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But marijuana providers will need financial backing to grow and expand their businesses enough to meet the demand.
That's where Justin Costello head of GRN Funds is different, seeing a multi-billion dollar medical marijuana industry in Florida. Costello recently announced his firm will provide banking for medical marijuana providers in Florida.
Costello already has 9 Florida businesses lined up for his services, but couldn't name them due to confidentiality agreements. It won't be long until more marijuana providers shift their accounts to GRN Funds in the coming months. It's likely Costello will be able to support growth and promote a healthy economy for the marijuana business today and in the future.
It's a business model that's worked in other states where marijuana is legal for either medical, or recreational use.
Costello says the key to "doing it right" is by tracking each sale and making sure you can track every dollar to avoid money laundering.
The Office Of Medical Marijuana Use, the state agency charged with governing Florida's medical marijuana industry is supposed to have a seed to sale tracking system in place, but has yet to implement it in real time.
There are some additional banks willing to accept medical marijuana providers business like First Green Bank who has made services available in Florida for almost 2 years. Although a recent merger has halted Green Bank from accepting new medical marijuana suppliers business.