Harvestable Loans? The First Bank for Cannabis Investments is Here

Following its legalisation in Colorado, the cannabis industry began to take off in the state, just like any other. But there was one difference: it had to carry out all its operations in cash, as no bank would risk working with it (due to the illegality of marijuana at the federal level). This posed a serious disadvantage for an industry that does 650 million dollars of business per year in the state, and that faced the major problem of not being able to store its money in a safe place.

The same rights and obligations for marijuana

“It is a legal industry. They pay taxes. They create jobs. They use the system to change the law, but the law is punishing them without any justification.” This was one of the views by young Alex Mason, age 25, which prompted him to create this financial cooperative. But The Fourth Corner is not directed only at cannabis entrepreneurs; it will also serve a wide range of cannabis associations. These will be able to make use of its banking services, finance themselves with loans and receive donations via electronic transfer; something that will seriously facilitate their development.

Access to banks is fundamental for the development of any industry.

How will The Fourth Corner Credit Union work?

The Fourth Corner is a non-profit financial cooperative that will provide banking services to any cannabis initiative in Colorado, as well as people who belong to charitable organisations related to cannabis. Members will be able to deposit profits, request low-interest loans, or make bank transfers. The differences with a normal bank do not end there, as it will also distribute dividends amongst its members.

The lack of control over cannabis money that reigns in Colorado is not good for anyone.

With its arrival, cannabis entrepreneurs in Colorado will be able to safeguard their earnings, pay their employees more easily, make their businesses more secure, and accept electronic payments. The government, meanwhile, will be able to track revenues from dispensaries and associations, thereby averting potential money laundering. The top priority of both parties? Transferring the 650 million dollars that the industry generates yearly into a secure financial environment.

The man with the plan: Alex Mason

The mastermind behind this revolutionary cooperative is named Alex Mason, a young paramedic who at the tender age of 25 was very clear on the fact that the cannabis industry needed to have its own financial entities if it was to move forward. “I didn't think that it was fair that Colorado's legal cannabis industry was deprived of the only tool that it needed to flourish: access to banking,” he explained in an interview with Rolling Stone, in which he appears with his whole family.

Everybody said that it was impossible to create a green bank, until he pulled it off.

It was they who helped him lay the foundations for the project. With the help of his father Mark Mason, who is a lawyer, he devised the legal outline for a world first: a banking organisation only for cannabis organisations. The project attracted figures from the medicinal cannabis world, like Page Figgi, the mother of Charlotte, and an attorney championing the use of marijuana oil for children with epilepsy and Brian Gliba, the founder of the Wounded Ego Project, who helps former soldiers who have seen battle to reintegrate into society.

Private security, tons of cash, and banks that are just blowing smoke

The Fourth Corner also comes as a response to another of the big problems that Colorado's cannabis world faces: how to safely store the enormous amounts of money taken in without falling victim to robberies? In an industry that generates so many millions of dollars per year, this is a difficult challenge. Some turn to private security, while others actually keep rolls of bank notes in their houses or businesses-with all the dangers that this entails.

The amounts of cash building up are huge.

Operating in cash is not easy: it consumes lots of time that could easily be saved through the use of electronic banking systems. But, until now, no bank had been willing to work with Colorado's banking industry. They argue that, as marijuana is illegal at the federal level, they could be accused of facilitating drug trafficking or laundering money. This is where The Fourth Corner comes in, which has paved a path towards safe banking that is secure and beneficial for all.

The philosophy of the first green bank

With its structure as a non-profit cooperative, The Fourth Corner Credit Union could be the key to solving the Colorado cannabis industry's banking problem. Chris Myklebust, director of the state's Financial Services Department, green-lighted the project in November with a firm handshake. “It is a great deal for Colorado and legitimate businesses,” he said after issuing the license that will allow them to operate in the Rocky Mountain State.

It continues to garner support across wide-ranging sectors of Colorado society.

The Fourth Corner Credit Union has already acquired the space where it will open its doors as soon as the Federal Reserve issues it an account number. Barring any surprises, this part of the process should be complete within the next few weeks, as it has met all the requirements set by the FED. However, this clearance will be provisional, for a maximum period of two years, until a final ruling is issued by the NCUA, the agency that ultimately regulates and insures all of the country’s credit unions.