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Banking for marijuana businesses is accessible but challenging

techsm5

Since Missouri legalized medical marijuana in 2018, banking for marijuana-related businesses has become more accessible. But the marijuana industry continues to face hurdles that other commercial establishments don’t have to consider.

Marijuana remains federally illegal, which means marijuana-related businesses have restricted access to federally regulated financial services, including loans and 401(k)s. Marijuana-related businesses are also limited in which payment processing companies (debit/credit cards) they can work with and have to pay a high rate of tax.

Ever since the sale of medical marijuana began in Missouri, the industry has exploded. Sales, which began in October 2020, recently topped $600 million, according to Lyndall Fraker, director of public outreach for Missouri’s Division of Cannabis Regulation.

Tax rates above 70%

The 280E tax code is one of the biggest challenges facing the marijuana industry nationwide, said David Brodsky, director of retail at The Farmer’s Wife, which operates three dispensaries in the South. of Missouri.

techsm5

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