Finance Cannabis Projects In a Post Covid-19 World

How to Finance Cannabis Projects In a Post Covid-19 World

The Covid-19 pandemic, and the resulting economic consequences, is putting all businesses to the test. For cannabis entrepreneurs, this means that raising capital (never an easy task) has suddenly become even more challenging than it was only a month ago.

Many of our clients were relying on promises of capital injections which have now all but dried up. Of course, the recently announced SBA Paycheck Protection Program won’t work for cannabis businesses, since the industry is still federally illegal and is therefore banned from the Program.

There is good news, however. We work with a network of non-bank, private lenders who are still funding new transactions using non-dilutive debt capital. This will be particularly good news if, like many cannabis entrepreneurs, you’ve recently had equity sources back away from funding your new project. Borrowers must have hard assets, such as real estate or equipment, to use as collateral.

Here are some details on our programs:

Real estate loans from $500,000 to $3,000,000:  

  • Up to 70% loan to value
  • Rates up from 11-15%, non-dilutive
  • Points negotiable depending on loan specifics
  • Uses of proceeds: Includes construction, renovation, cash-out for working capital, and refinance
  • Available for all construction types, with hybrid greenhouses at lower advance rates
  • Available in any state where cannabis is legal
  • Full personal recourse to the ownership group, with some exceptions depending on the ownership structure

Real Estate Loans of $3,000,000 or more:

  • Up to 100% loan to cost (construction/renovation) or 75% loan to value on existing, completed buildings
  • Rates up from 9-15%, non-dilutive
  • Points negotiable depending on loan specifics
  • Uses of proceeds Includes construction, cash-out for working capital, and refinance
  • Available for all construction types, including hybrid greenhouses
  • Available in any state where cannabis is legal
  • Full personal recourse to the ownership group, with some exceptions depending on ownership structure

Equipment Loans and Leases:

  • $100,000 and up
  • Up to 100% of cost
  • Best for new purchases, but refinance or cash-out of existing equipment is available on a case by case basis
  • 8-15% for businesses with 3 years of adequate cash flow.  Rate are higher for newer companies
  • Available in any state where cannabis is legal
  • Full personal recourse to the ownership group, with some exceptions depending on the ownership structure

Please contact us, and let our team of experienced commercial lending officers walk you through the process.

Be Well and Stay Safe,

Judy, Nicole, Roslyn and Jeff

Seed To Sale Funding is a Troy, MI-based consulting firm that raises debt capital for all facets of the cannabis industry, including grow/cultivation, processing, testing, retail, and secured transportation, and craft/microbusinesses. Since bank loans are not readily available for the hemp and cannabis industry, we primarily work with a network of private sources ranging from wealthy investors, family offices, private lenders, and hard money lenders. We place loans nationally wherever cannabis is legal, including Illinois, Michigan, Oregon, Maine, Oklahoma, Vermont, New Hampshire, Rhode Island, Delaware, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Maryland, Ohio, West Virginia, Missouri, Alaska, Minnesota, Louisiana, Florida, Arkansas, North Dakota, Colorado, New Mexico, Utah, Arizona, Washington, Oregon, California, and Nevada. Whether you are an owner of a single-location dispensary, a large multi-state operator, or anything in between, we have secured loans programs to suit your needs. Learn more at www.seedtosalefunding.com, or apply for financing here.

Seed To Sale Funding™ Places Cannabis Commercial Loans

Seed To Sale Funding™ Places Cannabis Commercial Loans Throughout the US

The cannabis industry continues to grow at record levels, employing and estimated 211,000 people last year. Retail sales for cannabis are expected top 30 Billion by 2025.  Entrepreneurs in the 35 states where cannabis is legal are experiencing a one-in-a-lifetime opportunity to capitalize on a high-growth industry that helps support their communities and well-being of its residents.

Seed To Sale Funding™ is proud to offer support for these far-sighted entrepreneurs.  Whether you are an owner of a single-location dispensary, a large multi-state operator, or anything in between, we have secured loans programs to fit your needs.

Highlights of our new national lending program are as follows:

  • Available wherever marijuana is legal, including the states of Illinois, Michigan, Oregon, Maine, Oklahoma, Vermont, New Hampshire, Rhode Island, Delaware, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Maryland, Ohio, West Virginia, Missouri, Alaska, Minnesota, Louisiana, Florida, Arkansas, North Dakota, Colorado, New Mexico, Utah, Arizona, Washington, Oregon, California, Nevada, and throughout Canada.
  • Loans are typically secured by hard assets such as real estate or equipment.
  • Purchase order and invoice factoring is also available.
  • Applicants are subject to approval by the lender.
  • Brokers and investment banks welcome, we gladly share fees for the right deals.

About Seed To Sale Funding™: We are a consulting company that raises debt capital for all facets of the hemp and cannabis industry, including grow/cultivation, processing, testing, retail, and secured transportation. Since bank loans are not readily available for the hemp and cannabis industry, we primarily work with a network of private sources ranging from wealthy investors, family offices, private lenders, and hard money lenders. 

Apply for real estate financing

Apply for equipment financing

Apply for purchase order/factoring

Brokers/investment bankers inquire here

WEED

Cannabis Commercial Loans Now Available Nationally and in Canada

Troy, MI, January 30, 2020 – Seed To Sale Funding™ today announced its expansion into all US states where medical or recreational use of marijuana is legal, as well as into Canada. This milestone is an important move for Seed To Sale Funding™ in fulfilling its mission to offer non-dilutive commercial loan financing and cannabis business funding for all qualified businesses.

“Our success in our native state of Michigan has been tremendous, so we are expanding,” says Judy Rinkus, CEO at Seed to Sale Funding™. “We now have a network of 25 lenders in the US and 5 in Canada, so we are actively seeking new clients who are seeking $500K or more for real estate loans or $250K or more for cannabis equipment financing and working capital.”

Highlights of the national program are as follows:

  • Available wherever marijuana is legal, including the states of Illinois, Michigan, Oregon, Maine, Oklahoma, Vermont, New Hampshire, Rhode Island, Delaware, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Maryland, Ohio, West Virginia, Missouri, Alaska, Minnesota, Louisiana, Florida, Arkansas, North Dakota, Colorado, New Mexico, Utah, Arizona, Washington, Oregon, California, Nevada, and throughout Canada.
  • Purchase order and invoice factoring are also available.
  • Applicants are subject to approval by the lender.

About Seed To Sale Funding™: We are a consulting company that raises debt capital for all facets of the hemp and cannabis industry, including grow/cultivation, processing, testing, retail, and secured transportation. Since bank loans are not readily available for the hemp and cannabis industry, we primarily work with a network of private sources ranging from wealthy investors, family offices, private lenders, and hard money lenders.

Seed To Sale Funding is 100% women-owned and operated. Judy Rinkus, CEO, was recently honored in a feature article on Leafly highlighting Michigan Women in Cannabis. Learn more at Seed To Sale Funding and These Women are Leading Michigan’s Legal Cannabis Industry.

LEAFLY_MichiganCannabusiness18-1024x1024

These women are leading Michigan’s legal cannabis industry

As Michigan’s dramatic struggle to end cannabis prohibition finally comes to a close, an interesting thing has happened to the state’s newest legal industry: It has a lot of women. Specifically: powerful, influential women.

By the numbers, women may not yet make up the majority of Michigan’s marijuana investors, ancillary service providers, and business owners, but there’s clearly a higher ratio of women in cannabis than there are in many of the state’s legacy industries like automotive and manufacturing.

And women in cannabis occupy positions of power. That means political power, lending power, and the subtle power contained in professional networks and investment portfolios.

Michigan women in cannabis tend to value collaboration, strategy, pragmatism, directness, and a mission-oriented drive. I’ve gathered together revealing insights from nine women who have made a considerable impact on the state’s industry.

Source:leafly

Judy Rinkus, founder of Seed to Sale Funding, and CEO of the Vortex Group:

I spent 30 years in the commercial lending departments of larger banks. I left the banking industry almost 2 years ago. I was tired of working for The Man—quite literally, since most of my managers were men. I spent some time finding an industry where I could put my financial skills, business development skills, and extensive network of business professionals to good use.

Fast forward to last November, when recreational marijuana was legalized in Michigan. I started receiving questions from business contacts regarding financing early-stage marijuana companies. As you probably know, banks won’t lend to these companies. Through series of connections, I was able to identify a group of about 20 non-bank lenders who were interested in the Michigan market.  And before I knew it, I had a pipeline!

Originally published on leafly

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