Pelorus Equity Group, a California-based commercial real estate lender to cannabis-related businesses, said it has secured a federally insured $20 million line of credit.
Pelorus said it believes it’s the first company in the cannabis sector to obtain such a credit line from a Federal Deposit Insurance Corp. (FDIC)-insured bank. That statement couldn’t immediately be verified.
The FDIC is an independent agency created by Congress that insures deposits and oversees financial institutions for safety and soundness.
The company said the credit line is at a low annual interest rate of 4.75% with no fees, depending on a business owner’s qualifications.
Pelorus CEO Dan Leimel attributed the FDIC-backed credit line as a result of the company’s “decades of commercial real estate experience” and “track record of success in cannabis.”
Business leaders need reliable industry data and in-depth analysis to make smart investments and informed decisions in these uncertain economic times.
Get your 2023 MJBiz Factbook now!
Featured Inside:
- 200+ pages and 50 charts with key data points
- State-by-state guide to regulations, taxes & opportunities
- Segmented research reports for the marijuana + hemp industries
- Accurate financial forecasts + investment trends
Stay ahead of the curve and avoid costly missteps in the rapidly evolving cannabis industry.
Just last month, Pelorus raised $42.3 million from the sale of five-year senior unsecured notes at a 7% annual interest rate.
Leimel said the new funds will enable the company to offer lower financing costs to its cannabis customers.
To date, Pelorus said it has completed 58 commercial real-estate loan transactions and has deployed $225 million to cannabis businesses.
