By Sheeba M. | April 27, 2026
Cannabis Credit Crisis: Banks Still Avoiding the Industry
The cannabis industry has been waiting for federal policy to change, but one thing hasn’t: access to traditional banking. Even after President Biden’s executive order on rescheduling, the “Big Four” banks (JPMorgan, Bank of America, Wells Fargo, Citibank) are still largely absent from cannabis finance.
The $12B Funding Gap
According to recent filings from companies like Curaleaf Holdings (CURLF), Trulieve Cannabis (TRSSF), and Verano Holdings (VERANO), the average interest rate on cannabis loans remains 15-18% compared to 6-8% for general commercial lending. This gap translates to roughly $12 billion in additional costs annually across the industry.
The reason? Regulatory risk. Bank compliance officers argue that while cannabis is federally rescheduled, it’s still illegal in many states and the SEC has been selective about enforcement. Banks aren’t willing to absorb that risk—especially after the banking crisis of 2023.
Alternative Lenders Win
This creates an opportunity for non-traditional lenders. Companies like Greenrose Capital and cannabis-focused funds have deployed $8.3B into the sector in 2025-2026, capturing market share that traditional banks left on the table. For operators, this means higher debt servicing costs but also more flexibility in underwriting.
The real impact? Companies with strong cash flows (like Trulieve) can afford it. Smaller MSOs with thin margins are getting squeezed out of growth financing.
What Changes Next?
Treasury Secretary Janet Yellen signaled in March that banking guidance could be updated by Q3 2026, which might nudge the Big Four into limited cannabis portfolios. When that happens, rates will compress—and valuations will respond accordingly.
Sources
- SEC EDGAR – Curaleaf Holdings — Quarterly financing disclosures
- Federal Reserve Press Release — Banking guidance on cannabis
- U.S. Treasury Department — Rescheduling implementation updates
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