As a cannabis business owner, we’re faced with more tasks than creating the latest marketing campaign or making sure our inventory is stocked for our customers.
We’re faced with a lack of support from banking institutions for the cannabis industry.
The cannabis community can expect to see a boom of business growth in 2017 with a total of 26 states and the District of Columbia legalizing marijuana in some form. So, with all the potential for growth, the federal government still classifies marijuana as an illegal drug, making it near impossible to open business bank accounts for cannabusinesses.
Hippo’s COO, Julia Gosnell, spoke with the LA Times in a recent article about the impacts of not having bank support for the cannabis business owner.
“I was told by an accountant, who closed his door to tell me this, that you just keep your cash under the mattress,” Gosnell said.
As the banks continue to deny cannabis income, we’re faced with new challenges on how to run our businesses. How do you continue to grow, pay business expenses and invest back into the business without a bank on your side?
“Imagine having to be paid in cash, having to pay your employees and suppliers in cash, having to take care of your payroll, sales and income taxes in cash,” LA Times reporter Robin Abcarian states.
But there is hope. California’s Cannabis Banking Working Group will meet in Los Angeles on Feb. 10 to discuss recommendations on opening up banking to the cannabis industry. And as organizations rally together, Hippo will be actively involved in getting the banks back on our side.