A local bank in Maryland is helping medical marijuana businesses alleviate a major headache in the cannabis industry.
According to The Washington Post, two marijuana dispensaries and two cultivators have opened accounts with Severn Savings Bank, an Annapolis community bank owned by publicly traded Severn Bancorp.
This is an operational boon for any cannabis business, given that many must deal strictly in cash – a situation that can trigger logistical issues and security concerns.
Here’s what you need to know:
- Severn requires “hefty” fees. One cannabis client pays $1,750 a month to use the bank.
- Account holders aren’t allowed to write checks or take out loans.
- Cannabis businesses using the bank’s services are allowed to pay employees via an automatic debit system and purchase supplies with a debit card.
- Licensed businesses with Severn accounts include: SunMed Growers, a cultivator in Cecil County; Allegany Medical Marijuana Dispensary in Cumberland; Time for Healing dispensary in Prince George’s County, and Green Leaf Medical in Frederick.
- Maryland’s medical marijuana dispensaries began legal sales to customers last month.