The California Cannabis Industry Association (CCIA) on Tuesday announced a landmark partnership with North Bay Credit Union that will allow the 400 CCIA members access to banking services through the financial institution.
The partnership will qualify CCIA-linked cannabusinesses for membership in the credit union and access to services such as checking accounts, online bill payment, wire transfers, and ACH processing.
North Bay Credit Union’s CEO Chris Call said in a statement that the institution has “been impressed with CCIA’s commitment to help California cannabis operators thrive through lobbying efforts and educational resources which aligns with our own mission of promoting local economic growth.”
California’s cannabis market generates $5.6 billion in annual revenues, the CCIA said in a press release, noting the state’s revenues account for more than 10% of the entire $52 billion cannabis market nationwide. Sales in the Golden State are projected to reach $7.2 billion by 2024, while the industry employs nearly 40,000 people at some 7,400 cannabis businesses, the cannabusiness organization said.
CCIA Executive Director Lindsay Robinson said that the goal of the partnership “is to alleviate the challenges that small businesses in the cannabis space face when it comes to banking.”
In legal markets throughout the U.S., most businesses are shut out of banking services due to federal cannabis prohibition and must operate on a cash basis. In 2019, the House of Representatives approved the SAFE Banking Act, which aims to normalize banking for state-legal cannabusinesses; however, that measure was never taken up by the Senate which, at the time, was led by Republicans.
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