Cannabis Construction Financing For Your Facility

Facilities

• Cultivation Facility — Many lenders are surfacing for the build-out, construction, and equipment needed within a cannabis growing facility.  If the lender has experience in the cannabis facility industry, they will understand and lend against the as completed cannabis value.  Loans can be used for acquisitions of property, tenant improvements, ground-up construction, CAPEX or equipment, rehabs, and refinances typically requiring a first lien mortgage position on the property.    

• Manufacturing Facility —  Many lenders are surfacing for the build-out, construction, and equipment needed within a cannabis manufacturing facility.  If the lender has been in the industry for many years they will understand and lend against cannabis value.  Loans can be used for acquisitions of property, tenant improvements, ground-up construction, CAPEX or equipment, rehabs, and refinances typically requiring a first lien mortgage position on the property. 

Dispensaries

• Recreational Dispensary — Most traditional commercial real estate lenders are reluctant to fully embrace the retail dispensary business model, even though dispensaries were pandemic proof like liquor stores. Public and private REITS, sale-leaseback firms, private debt institutions, and private equity financing are available to medical or recreational dispensaries.  Lenders are ideally looking for limited license states and prime locations when accessing a retail store.    

• Medical Dispensary —  Most cannabis real estate lenders are reluctant to fully embrace the dispensary business model, even though retail dispensaries were pandemic proof like liquor stores. Public and private REITS, sale-leaseback firms, private debt institutions, and private equity financing are available to medical or recreational dispensaries.  Lenders are ideally looking for limited license states and prime locations when accessing a retail store. 

Processing

• Lab Financing –  Many lenders are surfacing for the build-out, construction, and equipment needed within a cannabis manufacturing facility.  If the lender has been in the industry for many years they will understand and lend against cannabis value.  Cannabis real estate loans can be used for acquisitions of commercial property, tenant improvements, ground-up construction, CAPEX or equipment, rehabs, and refinances typically requiring a first lien mortgage position on the property.    

Other

• Equipment Loans and Leasing — If you need capital to buy new equipment or leverage existing unencumbered equipment, loans, and leasing options are available for acquiring and upgrading various equipment used in the cannabis manufacturing process.  Equipment that is already owned can be leveraged through a sale-leaseback.  Some equipment that can be financed includes growing and processing equipment, including lighting, HVAC, Racking, extraction equipment, energy systems, kitchen equipment, and other cannabis equipment.  Upwise works with some of the best cannabis equipment manufacturers in the country such as Fluence lighting, Fohse LED, Sync Lighting, PIPP Horticulture, Glow Glide, Quest HVAC, Hawthorne Gardening Center, Grow Generation, and more.   

• Cannabis Business Loans or Term Loans— Some term loans are available to stabilized cannabis operators who are showing a net profit and have a proven track record.  Most business loans in the cannabis industry are from private institutions that are looking for secured returns from their loan products.  Most lenders require real estate, licenses, or equipment as collateral with a blanket lien across all business assets.  Some banks are lending to cannabis companies that are publicly traded or MSOs, operating in multiple states at a profit.    

• Cannabis Bank Loans – These cannabis loans are available for profitable cannabis operators through almost 35 + banks and small credit unions throughout the united states. A lot of these banks that are lending to cannabis businesses require the CRB to bank with the institution as well. Interest rates are low for cannabis bank loans, typically 5% – 8% over 5 to 15-year terms with a 25-year amortization schedule. These loans are senior secured will a blanket lien on all business assets including real estate. For real estate secured bank loans, the banks are lending at 50% to 60% loan to value based on the liquidation value of the real estate asset appraised by an MAI certified appraisal firm.