Cannabis Bank Loans Do Exist

For years, many cannabis business owners assumed bank loans weren’t an option — that the only way to fund a dispensary or grow facility was through high-interest private or hard money lenders. The truth? Cannabis bank loans have been around for quite some time.

The challenge is, most cannabis operators simply don’t know who the right banks and credit unions are — or how to navigate the process. That’s where Lulu Capital comes in. We know the lenders that actually do cannabis loans, and we know exactly what they’re looking for.

Most brokers who say they “do cannabis” only deal in private or hard money. That means good operators — people running profitable, legitimate businesses — often get pushed into expensive loans when they could have qualified for a true bank loan with far better terms.

If your business and property are in a strong position, you might be surprised how competitive these loans really are.

When the Numbers Make Sense, So Do the Banks

When the fundamentals of your business line up, lenders treat your loan like any other commercial real estate deal. That means rates and terms that look refreshingly normal:

• Rates: Typically in the mid-6% to mid-7% range

• Terms: Usually 25 years

• Structure: Fixed for 5 years, one rate adjustment for another 5, then a 10-year balloon

  
  

For qualified cannabis operators, this isn’t fantasy — it’s reality. Banks and credit unions have been quietly funding these deals for years; you just need the right introduction and packaging.

What “Strong Position” Really Means

To qualify for traditional financing, banks and credit unions look for the same key indicators of strength they’d expect from any other business loan:

• 3–5 years of operating history

• Personal guarantors with good credit (generally 680 or higher)

• Consistent profits over the past two years

• A solid year-to-date P&L that shows continued growth

• Cash reserves equal to roughly 10% of the requested loan amount

  
  

These are the ingredients that build confidence for a lender. When they’re in place, you’re in line for some of the best financing the cannabis industry has ever seen.

And if you’re just shy of one or two of these benchmarks? Keep reading — you still might have options.

If You’re Close, Don’t Count Yourself Out

One of the biggest mistakes cannabis business owners make is assuming that “almost” doesn’t count. But in lending, it often does.

At Lulu Capital, we’ve seen plenty of situations where a borrower came up a little short on paper but still got the deal done. Why? Because one of our bank partners liked the deal, the property, or simply wanted to bring their banking relationship onboard.

That’s why we always encourage operators to start the conversation. With just some basic financial info, we can get a Letter of Interest (LOI) in your hands quickly — giving you clarity on rates, structure, and next steps.

Our Lending Path: Always Swing for the Fence First

Every cannabis financing deal we handle follows a logical progression designed to secure the best possible terms before moving to higher-cost options:

1. Bank first. If your numbers work, this is always our starting point.

2. Credit Union next. Often local and flexible, these institutions can be a great fit.

3. Private Capital. Perfect for short-term needs or repositioning.

4. Hard Money last. A useful fallback when nothing else fits — but not where we begin.

   
   

Sometimes a 36-month Private Capital bridge loan is all a client needs to strengthen their position and graduate to a bank loan the next time around.

Getting Pre-Approved Is Easier Than You Think

Our pre-approval process is fast, simple, and built for busy cannabis operators. With a short conversation and a few key documents, we can often issue a Letter of Interest in a matter of days.

From there, we guide you through the process — helping you present your financials and property in the best possible light to the right lender.

Bottom Line: Real Cannabis Bank Loans Are Out There — and We Know Where to Find Them

Cannabis bank loans aren’t new. What’s new is that more operators are finally learning how to access them. The key is working with a team that already knows the players, the underwriting preferences, and the strategies that get deals approved.

If you own the real estate your cannabis business operates from — whether it’s a dispensary, grow, or processing facility — there’s a good chance you can secure true bank financing.

Reach out to Lulu Capital today and find out what your property and business could qualify for. You might be surprised at just how strong your options are.