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    Is your medical cannabis project in need of additional financial resources? see more

    Non-Conventional Financing for Cannabis Industry Businesses

    Guest Post by Christopher Dussold Ph.D, MoCannTrade Platinum Member |  AVAIL Professional Services

     Is your medical cannabis project in need of additional financial resources that also promote energy efficiency and cost savings?  While many traditional forms of financing may not be accessible for medical cannabis related businesses, the following types of programs might be the types of funding opportunities may be available in Missouri for MMJ businesses like yours: 


     
    Operational and Asset Financing – Capital sourcing can be one of the most challenging aspects of any new or expanding venture.
    Oftentimes, alternative capital sources can fit the needs of a business while providing attractive rates and terms.  These include energy-based financing as well as municipal incentives.  Some examples include:

    Commercial PACE (“Property Assessed Clean Energy”) is a state legislated program which allows building improvements that result in utility savings to be funded by private capital and repaid via a long-term property tax assessment. C-PACE tax assessments are long-term, fixed rate and non-recourse. C-PACE tax assessments can extend for periods of up to 30 years, so long as the weighted average useful life of the installed measures exceed the term of the C-PACE assessment. C-PACE tax assessments are also fully transferable between owners since it is tied to the land and, as it is tax assessed, can be passed along to a building’s tenant.
     
    Municipal programs and incentives are often options for firms in areas where the governing entity sees the benefits of encouraging business growth and entrepreneurship.  Some examples include: Industrial Revenue Bonds (IRBs), Community Improvement Districts (CIDs), and Tax Increment Financing (TIF), to name a few.  For your medical cannabis firms to be able to utilize all available financial assets, it is important to assess the availability, types, and amounts of assistance each municipality can provide.

    If any of these program opportunities seem like a potential fit or would provide value to your organization from a access to capital standpoint, I would encourage outreach to your attorney, industry / energy consultant or a lending program consultant to better understand what is available to Missouri businesses and how to access.  

     

    Dr. Christopher Dussold

    Avail Professional Services

     

     

     December 07, 2020