Greater Nevada has been building its business lending in recent years, and held $402.4 million in commercial loans as of Sept. 30, up 45% from a year earlier and accounting for a third of its total portfolio.

Originations of real estate-backed commercial loans from January through September was $136.8 million, triple its volume for the first nine months of 2021. However, commercial loans not backed by real estate fell from $529.4 million produced in 2021′s first nine months to $11.8 million this year.

Michael Thomas, Greater Nevada's SVP of marketing and communications, said the credit union saw the need to extend business lending and depository services to cannabis-related businesses. When Greater Nevada started its pilot program there were few options in the state.

"There are more now," Thomas said. "This is part of our overall commitment as being the biggest credit union in the state."

Thomas said the pilot program went through its growing pains, and the credit union learned and worked through them.

"We feel confident now that we've gotten enough feedback," Thomas said.

Michael Thomas

Greater Nevada had about 40 cannabis-related member businesses in October. It has served mostly dispensaries, but it also serves growers and lounges. It has even picked up businesses in the cannabis supply chain that have had difficulty getting loans because of their ties to the cannabis business.

Another growing part of its membership are employees of those businesses.

Most of the business is depository, but the credit union has also begun extending more business loans. The need was great, because the limitations faced by cannabis businesses had attracted predatory lenders with high interest rates, Thomas said.

"There is still a need for lenders who understand these businesses," Thomas said. "We believe these businesses need a stable lending environment. We are going to try to continue to step in and help where possible."

For compliance, Greater Nevada partners with Green Check Verified, a company founded in 2017 and based in Bonita Springs, Fla., 13 miles south of Fort Myers.

"For any credit union entering this space, there's a significant investment in training, time and building out the processes," he said.

Financial institutions are required to carefully monitor their cannabis customers to ensure they are complying with state and federal regulations. The credit union must also continuously pass examinations to prove its compliance with regulations on cannabis-related businesses.

Another way the credit union is hoping that cannabis businesses will find help is through the SAFE Banking Act, which has provisions that would make it easier for cannabis businesses to operate. It prohibits the FDIC, NCUA or other federal regulators from penalizing banks or credit unions for providing banking services to a legitimate cannabis-related business.

Thomas said the bill has bipartisan support. It also has the support of both CUNA and NAFCU. It has passed the House, but is awaiting action in the Senate. The House included the bill in the omnibus defense appropriations bill. Backers had hoped the Senate would do likewise, but so far it has not.

"There is a lot of pressure right now by several industry trade groups to push for action on the federal legislation by the end of the year," Thomas said.

Nevada's credit unions have had the support of the state's Congressional delegation, including U.S. Sen. Jackie Rosen, D-Nev., in its efforts to pass the Safe Banking Act, he said.

On Nov. 17, she introduced the Fair Access for Cannabis Small Business Act designed to ensure that legally operating cannabis small businesses have access to loans and programs provided by the Small Business Administration (SBA). Currently, the SBA excludes all small businesses with direct or indirect products or services that aid the use, growth, or enhancement of cannabis from accessing SBA loans and programs.

"The unfair barriers to basic federal support and resources have hurt our state's legally operating cannabis small businesses," Rosen said. "This legislation will level the playing field so that cannabis small businesses — including those owned by people of color, women, and veterans — have access to the same federal resources and loans that other legal businesses are entitled to."

In a news release from Rosen's office, Layke Martin, executive director of the Nevada Cannabis Association, said "lack of access to capital and banking services remain the greatest barriers to entry into the cannabis industry."