Huge Cannabis Debt Coming Due

The cannabis industry is facing a new financial reality — billions of dollars in Cannabis Debt are coming due over the next 18–24 months, and not every lender is sticking around to refinance it. Many operators who took on short-term, high-yield notes during the market’s expansion years are now staring down maturities at a time when capital has gotten tighter and more expensive.

But here’s the truth: while some lenders are pulling back, Lulu Capital is still very much open for business — and offering competitive solutions that reflect both the quality of our banking and private capital relationships.

What’s happening in cannabis lending

Across the U.S., hundreds of millions in Cannabis Debt are set to mature by 2026. Larger operators are facing refinancing risk, and smaller businesses are finding traditional lenders unwilling to roll existing loans. This has led to a growing need for bridge loans, sale-leasebacks, and creative refinancing strategies.

Tighter lending standards are also changing the game. Lenders now want stronger collateral, higher DSCRs, and more proven operators. But the good news is that well-run cannabis companies — especially those with established track records, solid financials, and stabilized real estate — still have access to highly competitive terms.

Where we’re lending right now

At Lulu Capital, we continue to fund Cannabis Debt refinances and acquisitions nationwide with strong banking and private investor support. Current market rates:

• Bank Loans: mid-6% to mid-7% for well-established grow and dispensary properties

• Credit Union Loans: mid-9% to mid-10%

• Private Capital Loans: mid-10% to mid-12%, depending on property strength and sponsor profile

  
  

These programs support both dispensaries and cultivation facilities, and we’re structuring deals across purchase, refinance, and cash-out transactions.

What this means for cannabis operators

If your loan matures in the next year or two, now’s the time to act. Waiting until the last minute could mean paying more — or worse, losing leverage with your current lender. The smartest move is to explore your refinance options early, while you can still control the conversation.

Our team can help you evaluate your existing Cannabis Debt, structure a refinance or bridge solution, and align with the right capital source for your property and goals.

Bottom line

Yes — there’s stress in the market, but opportunity, too. When others pull back, we lean in with clarity, flexibility, and reliable funding relationships.

If you’d like a confidential review of your current Cannabis Debt position, reach out to Lulu Capital today.

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