Cannabis Investor? When SBA Says No,
We Might Say Yes...
The rise in cannabis stock investing has taken the U. S. market by storm recently. With medical and recreational cannabis use on the rise, and the use of CBD derivatives increasingly popular in forms as diverse as hair treatment and skin creams, the industry is expected to continue rising in sales and investment in the next few years.
For individuals seeking to buy a business, franchise, or investment property but who do not wish to sell their cannabis stock, there are very few options. The Small Business Administration (SBA) will not allow cannabis stock to be considered an asset for lending purposes. Most banks or brokerages also have restrictions on leveraging cannabis stocks, if not outright prohibition. Yet, many of these stocks have very large capitalization now and high prices with excellent, consistent trading volume — the very definition of a security that is eligible for our A. B. Nicholas LeverageLine program.
True, not every cannabis stock will qualify. We’re looking for solid pricing above $5/share (the higher the better) along with a consistent volume of at the very least 250,000 shares trading hands daily over at least a month prior. But if the cannabis stock meets these criteria and is free-trading, our network has lenders that will review and very possibly make an offer to you to lend against cannabis stock holdings.
Wondering if your cannabis portfolio qualifies? Just send in your one page application and we’ll let you know same day. That’s how we do business here at A. B. Nicholas, where our clients’ satisfaction is always our number one goal.
Learn how you can use our services to borrow money to purchase homes, fund projects, launch or fund businesses, or pay for college tuition.
For questions, feel free to ask via email at [email protected] or contact us here.