ARVADA, Colo.–Partner Colorado Credit Union has announced its first lending program for cannabis private banking clients.
The credit union has become a well-known pioneer in serving cannabis businesses, and operates the CUSO Safe Harbor Private Banking, which offers solutions to other credit unions.
“Now in our sixth year of cannabis banking, we have the experience and knowledge required to evaluate risk,” said Sundie Seefried, CEO of Partner Colorado CU. “Our board and management team believe that a slow, methodical approach is our best risk mitigating strategy. The first loan products are real estate loans for properties that contain an existing structure, including new loans and refinances. We’re making the Cannabis Business Lending program available first to our 500-plus private banking clients who have a combined cash flow of over $200 million per month.”
What it Means to One Client
Partner Colorado said among the first client businesses to participate in the loan program was Silver Stem Fine Cannabis and its founding partner, Stan Zislis.
“Lending means jobs to us,” explained Zislis. “Real estate lending is one small step toward full-service banking, but it is a very important first step.”
Partner Colorado CU President Doug Fagan said cannabis banking is a highly specialized and labor-intensive process, and the credit union originally stepped up to offer cannabis businesses legal banking services at a time when many cannabis companies were trying to operate as cash businesses.
“Partner Colorado CU created remarkably detailed processes and procedures to meet the tough legal requirements of cannabis banking,” said Fagan. “Then we trained private bankers to become experts capable of determining if cash generated in a cannabis business is legitimate. We now have the systems, expertise and right team in place to begin expanding our banking services into lending.”
High Level of Scrutiny
David Michel, partner and general counsel in IGadi, a vertically integrated cannabis grow and retail operation, is a long-term Partner Colorado CU private banking client reminded there is a high level of scrutiny, and that cannabis firms must account for each dollar.
“Finding an experienced banker who fully understands the industry is critical to success,” said Michel, who believes the Partner Colorado CU lending program is a welcome step toward a wider portfolio of cannabis business lending products. “The real estate loans will help us eliminate leases, which in turn helps us build wealth over the long term.”
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