If you work in cannabis, or anywhere near it, you already know the drill. Progress is happening, but when it comes to banking, we’re still stuck fighting battles that should’ve been over years ago.
Keep reading as we break down why banking can be so challenging, how it impacts businesses like ours, and what it means for our future. Oh, and if you transact with us regularly, we’ve got some important banking update info for you too.
Why Cannabis Banking Is Still a Minefield
The reality is: cannabis is still federally illegal. Even though dozens of states have legalized it for medical or adult use, most big banks still see anything remotely connected to the industry as a liability.
That’s why cannabis-related companies end up caught in the crossfire. Institutions like Wells Fargo, Bank of America, and Chase have strict policies that quietly flag and shut down accounts tied to cannabis. It doesn’t matter if you’re fully compliant. It doesn’t even matter if you touch the plant. If you’re in the ecosystem, you’re considered “high-risk.”
The most significant challenge is that banks have no real incentive to change without federal protection like the SAFE Banking Act in place. It’s easier for them to close accounts and walk away than it is to navigate the legal gray area.
The system is designed to make it difficult for cannabis businesses, and it’s hurting the entire industry.
How This Impacts Real Businesses (Like Us)
These challenges don’t just hit plant-touching businesses like growers and dispensaries. They hit everyone tied to the cannabis economy. Cannabis tech providers, packaging companies, event organizers, nonprofits, and even creative agencies like Puf all face extra scrutiny. If you’re part of the movement, you’re part of the risk.
Yes, even we’re feeling it. We recently found out that the institution we have banked with since PufCreativ was founded over eight years ago has decided that they would no longer like our business, so we needed to pivot ASAP.
For us, the process includes:
- Finding a new banking partner on a tight timeline.
- Informing all of our clients, vendors, and partners.
- Updating billing info for all of the softwares and licenses we need to operate.
- And the most important update: Payroll!
And we really are the lucky ones. For smaller businesses that don’t have flexible infrastructure, and for all of those cannabis freelancers, contractors, and solopreneurs, losing a bank account when you work for yourself can be quite problematic.
The financial system hasn’t adapted to cannabis yet, and that’s the problem. It’s a barrier to doing good business, and it’s something every one of us has to keep fighting to fix.
The Bigger Picture: Barriers to Growth and Stability
When reliable banking isn’t an option, it slows down businesses and holds back the entire industry.
Without stable financial services, cannabis companies are forced to deal with:
- Higher fees and inflated costs from “cannabis-friendly” banks and processors.
- Limited access to loans and credit lines that are crucial to growth.
- Cash-heavy operations that increase safety risks for employees and customers.
- Slower expansion and less innovation across the industry.
It creates a system where only the biggest players with the deepest pockets can weather the storm. Meanwhile the independent, legacy, and community-rooted businesses get squeezed out of an industry where social equity should remain a centerpiece.
The craziest part is that this doesn’t just hurt cannabis companies. It hurts real estate, ancillary businesses, and local economies that could be thriving if the industry could operate on a level playing field. Until there’s federal reform like the SAFE Banking Act, we’re all stuck navigating an outdated system that forces smart, compliant businesses to jump through hoops just to survive.
Our Current Situation (And How You Can Stay in Touch)
Due to our need to change banking institutions we’re actively reaching out to all of our clients, partners, and vendors so there’s no disruption to the work we’re doing together. We are fortunate to have a deep rolodex of folks who will need this new info, and we want to make sure that no one is missed.
If you regularly transact with our old account and haven’t received any communications from us yet, please reach out to us here. We want to make sure everyone updates their records smoothly and securely.
A Reminder We’re Here to Build Something Better
The cannabis industry was born from resilience, creativity, and community, and even when the system makes it harder than it needs to be, we keep showing up. We keep adapting. We keep fighting for a future where businesses like ours and yours can thrive without being penalized for outdated misconceptions about cannabis.
We’re grateful for every client, partner, and friend who’s navigating this wild ride with us. Thanks for sticking with us through the challenges, the pivots, and the constant growth. Want to stay connected or have questions? Hit us up. We’re here.
