As Vermont’s retail cannabis market gets ready to debut this fall, one of the key financial institutions making the marijuana market possible is hitting the brakes.
The Vermont State Employees Credit Union is one of the major players in the new retail space. But this week the credit union announced it’s no longer taking on new cannabis businesses due to what they call a “sudden spike in cannabis accounts.”
James Pepper, chair of the state’s Cannabis Control Board says the VSECU news was not surprising. “I think their exact quote from last July was, ‘if we are talking about 50 to 75, that is doable. If we are talking about 200 to 300, that might be tough for one financial institution to take on that risk.’”
Pepper says there are plenty of other options for budding businesses, including the Vermont Federal Credit Union, which has now opened its cannabis banking.
Meanwhile, retail license applications can now be submitted to the Control Board. The state can begin issuing those licenses on October 1. Once a retail license is issued, cannabis will be available for sale in the Green Mountain State.