One of the main bottlenecks to the growth of the cannabis industry is access to capital. Several businesses in the space have bemoaned the unleveled playing field regarding access to money to grow their businesses.
Partly because of the lack of legislative frameworks to support the cannabis industry, businesses can't borrow at the favorable rates at which traditional banks lend to non-cannabis businesses. For years, this has been the bane of the sector.
These challenges mean a lot needs to be done if the cannabis market is to achieve the $70.6 billion in monetary value by 2028, as projected by experts.
Businesses and individuals are keeping their fingers crossed and placing their hopes on the passing of the SAFE Banking Act of 2021, currently before the U.S. Senate. Many believe the Act will fix the financial transactions and legislation issues that could hinder the industry's ability to harness its full potential in the long run.
Rainbow Realty Low-Cost Financing
Photo: Flower One — Las Vegas
On the capital access front, a few companies are doing their best to lend to cannabis-related businesses. One company that stands out from the pack is Rainbow Realty Group LLC.
Rainbow is a real estate owner, lender and investment firm focused on the U.S. cannabis industry. The New York-based company is providing the needed capital access and support cannabis tenants and borrowers have been yearning for.
It is serving as a savior for businesses at a time when public equity markets within the cannabis industry have dried up and even the largest and most experienced operators are looking for new ways to fund their business expansion.
For some time now, access to investment capital has significantly decreased because of market conditions resulting from a grow-at-all-costs approach many operators chose to implement. This has left most operators struggling to find capital to expand their operations.
And, as traditional financing is not an option, Rainbow is building a pipeline of deals with operators that help them at a time when growth is essential to capitalize on market opportunities.
The company's investments provide operators with capital via sale-leaseback transactions and senior secure mortgage facilities, giving the cannabis companies the ability to leverage their existing assets at market rates with flexible structures customized for specific operator needs.
Rainbow's team proudly has over 60 years of real estate development and management experience, with 10 years of experience working in the cannabis market. The company currently owns real estate interests …