Alaska Credit Union to Support Cannabis Businesses

[dropcap class=”kp-dropcap”]M[/dropcap]ost banks and credit card companies in the U.S. usually avoid serving cannabis businesses due to the federal restrictions on cannabis. But at least one credit union will soon be launching its pilot program that will serve cannabis businesses in Alaska. This new service will likely give the typically cash-reliant industry a new financial option and help it thrive in this growing business.

Credit Union 1 announced last Thursday its intention to begin catering to cannabis businesses in Alaska. The Anchorage-centered credit union will provide financial backing for cannabis-based businesses that otherwise have to handle large amounts of cash on a regular basis, leaving them targets for crime and abuse.

Credit Union 1’s status as a state-chartered credit union enables it to support Alaskan cannabis businesses and alleviate pressures on the state by handling  large amounts of cash. Business owners pay the excise tax by using a drop box, which state employees collect from regularly. The state is averaging over a million dollars in revenue from cannabis monthly. Three-quarters of the state’s cannabis tax money has also been handled on a single cash-counting machine.

“It’s a lot of cash,” said Credit Union 1 CEO James Wileman, who anticipates the pilot program to begin the first half of next year. “Imagine running your own life without having access to banking.”

The credit union will start with a pilot program of a few businesses and expand to offer services to more businesses. It also announced it will donate one percent of its profits from the partnership with cannabis businesses to its #CU1LUV Community Fund.

“It’s important to note that Credit Union 1 does not take a political or moral position on the legalization of marijuana by providing services to these businesses. When it comes to our members, we always seek to meet the financial needs of those we serve without judgment or prejudice,” read the credit union’s announcement.

Cannabis businesses in the state are ecstatic about the option, said Cary Carrigan, executive director of the Alaska Marijuana Industry Association. The association represents about 120 cannabis businesses in Alaska.The consensus is, ‘What took so long?’” Carrigan said.