Cannabis Companies Face 15% Loan Rates While 68.1% of Surveyed Hemp Businesses Expect Closure

Cannabis businesses continue to face expensive banking services, account closures, and loan rates exceeding 15%, while a separate industry survey suggests forthcoming federal hemp restrictions could threaten thousands of businesses and jobs.

Together, the two reports illustrate how federal policy continues to shape access to capital across the cannabis economy—even as state-regulated marijuana and hemp-derived cannabinoid markets generate billions of dollars in revenue.

A newly released U.S. Government Accountability Office report found that approximately 1,000 banks and credit unions filed cannabis-related suspicious activity reports in 2024. That represents roughly 11% of the approximately 9,000 federally insured depository institutions nationwide.

The GAO cautioned that the figure does not establish that all 1,000 institutions knowingly maintain cannabis companies as ongoing customers. Some may have processed occasional transactions, while others may serve ancillary businesses such as law firms, landlords, or equipment suppliers rather than companies that directly grow, manufacture, or sell cannabis.

The number of institutions filing cannabis-related reports increased annually between 2015 and 2019 before remaining relatively stable through 2024.

Cannabis Banking Fees Can Reach $100,000 Annually

The GAO conducted nine focus groups and 11 interviews involving officers from 74 financial institutions. It also held eight focus groups with owners and managers from 51 cannabis-related businesses.

Among 48 cannabis-business participants who answered a poll about banking access, 43 said their businesses had bank accounts. Access, however, did not guarantee affordability or stability.

Participants described accounts being closed with little warning, application processes lasting weeks or months, and fees considerably higher than those charged to conventional businesses.

Participants in seven of eight business focus groups reported paying monthly or annual account fees. Two said they paid at least $100,000 per year.

Financial institutions serving cannabis businesses confirmed that they charge these customers more. Participants in every focus group involving institutions that serve cannabis businesses said their organizations imposed higher fees than they charged other types of clients.

Under existing Financial Crimes Enforcement Network guidance, institutions serving cannabis-related businesses must conduct extensive due diligence and file designated suspicious activity reports while meeting Bank Secrecy Act requirements. Financial institutions cited those compliance costs, along with potential legal and regulatory risks, when explaining why they avoid or charge more to serve the industry.

Cannabis Loan Rates Can Exceed 15%

Financing presented another major obstacle.

Participants in all eight cannabis-business focus groups reported receiving loan offers with high fees or interest rates. Participants in seven groups cited rates exceeding 15%.

For comparison, a Federal Reserve Bank of Kansas City survey found median interest rates between 7.42% and 7.91% for comparable small-business loans during the first quarter of 2025, when the GAO conducted its cannabis focus groups.

Operators unable to obtain traditional financing reported turning to private investors and nontraditional lenders. Some described unfavorable terms, while a few said potential investors proposed agreements that could eventually allow them to take control of the business.

Cannabis businesses may also be ineligible for federal financing programs such as Small Business Administration loans, although some state and local governments offer programs for which they may qualify.

The GAO noted that its focus-group findings provide detailed accounts of participants’ experiences but are not generalizable to every cannabis business or financial institution.

Payroll and Payment Problems Add Costs

Payment processing remains another source of friction. All eight cannabis-business focus groups reported problems using preferred methods, particularly credit cards, which Visa and Mastercard prohibit for cannabis purchases.

Operators instead rely on cash, ATMs, checks, wire transfers and ACH payments, adding fees, transportation costs and theft risks. Seven groups reported payroll providers closing or suspending services, while three cited manual alternatives, including cash wages.

The impact extends to individuals: about half of 44 owners and managers polled reported personal banking or loan problems affecting them or their employees because of their industry ties.

Regulators Report No Enforcement Solely for Serving Cannabis

One of the GAO’s most notable findings is that federal regulators reported no enforcement action against financial institutions solely for serving cannabis businesses. GAO found no such cases in discussions with regulators, trade groups and institutions serving the industry.

Legal and compliance risks remain, including Bank Secrecy Act enforcement and marijuana’s federal status. Still, 20 of 25 participants from institutions outside the industry said a federal safe harbor could change which cannabis businesses they would serve. Others would require legalization or reduced compliance obligations.

68.1% of Surveyed Hemp Businesses Expect to Close

Banking is not the only federal pressure facing the industry. The 2026 U.S. Hemp Cannabinoid Report from Whitney Economics surveyed 496 hemp businesses across 35 states about forthcoming restrictions on hemp-derived cannabinoids.

Among respondents, 68.1% expected to close if the restrictions take effect as written. Another 15.5% anticipated layoffs, 6.9% expected lower revenue, and 3.2% planned to relocate.

These are survey responses, not observed outcomes or measurements of the entire industry.

According to figures from Whitney Economics reported by the Denver Gazette, the report projected 29,523 to 36,744 fewer employers, 188,961 to 225,861 displaced workers, and $35.1 billion to $41.3 billion in lost annual revenue.

Projected wage losses ranged from $7.5 billion to $8.9 billion.