Federal Bill Would Give State-Legal Cannabis Companies Access to Banking Services

U.S. Representatives Troy Carter (D-LA) and Guy Reschenthaler (R-PA) this week introduced the bipartisan Capital Lending and Investment for Marijuana Businesses (CLIMB) Act, which aims to give state-legal cannabis companies access to lending and investment opportunities available to other industries.

Most financial institutions are currently unwilling to serve the industry, as cannabis remains a federally prohibited, Schedule I substance.

But to Act of ASCENT would establish protections for private lenders to make loans and for government agencies, such as the Small Business Administration (SBA), or the Minority Business Development Association (MBDA), to provide grants to state-licensed cannabis companies.

“This legislation is an opportunity to bring equity and equal opportunity to our nation’s growing cannabis industry,” said Rep. Carter in one press release.

“Working directly with small, minority, and veteran-owned cannabis businesses, it’s clear that access to capital remains one of the biggest barriers to entry and success in the industry. By bringing symmetry to the business ecosystem with the CLIMB Act, we can help communities that have long been harmed by the criminalization of marijuana—and that’s all leaders in American business.” – Carter, in a statement

Saphira Galoob, CEO of the US Cannabis Roundtable, said the bill would “help unleash the full potential of the American cannabis industry” and ensure that “American cannabis businesses, workers and investors have the same opportunities and access to financial services as foreign competitors.”

Meanwhile, President Donald Trump issued an executive order last December directing federal agencies to move cannabis from Schedule I to Schedule III under the Controlled Substances Act. Officials, however, have so far failed to implement the order.

Federal agencies initiated first rescheduling process in 2024 under then-President Joe Biden.