Local SAFE Banking Act would make cannabis business easier If approved by the U.S. Senate, the bill would make it easier for shops to borrow money and take credit card payments. When Phil Smith and Jenny Roseman first started their cannabis delivery business Freshly Baked, they struggled to scrounge together enough money to begin operations. Since their business isn’t federally recognized, only a handful of banks would do business with them — a challenge that every new cannabis business must endure. “We had to bootstrap this thing. Jenny and I went from kitchen table to kitchen table to raise the money we did,” Smith said. “It would have been nice to just go get a business loan like a normal company.” The Secure and Fair Enforcement or SAFE Banking Act, which passed through Congress in April 2021 and is waiting for a vote in The Senate, would address this exact issue. The way things are now, interstate banks — banks that operate on a nationwide level — are prohibited from working with cannabis companies due to the fact that the drug is federally illegal. Banks that work with these shops can receive heavy fines and penalties, so many banks avoid providing loans or handling finances for these newly forming companies. 

Local Boston breaking news, sports, weather and events, 10/02/2021 20:00:00

Open article: https://www.boston.com/news/local-news/2021/10/03/safe-banking-act-would-make-cannabis-business-easier