The state-by-state nature of legalization in the cannabis industry combined with the continued growth in new emerging legalized states across the US, has created a sticky situation when it comes to investing in and lending to the cannabis industry.

Commercial Property Assessed Clean Energy (C-PACE or PACE) —a financing medium widely used for traditional manufacturers, energy-efficient facilities, and renewable energy build-outs— is now available to authorized properties in the cannabis industry.

Quite underutilized in this industry, C-PACE financing recently became available for properties is in a state that has passed the legislation that empowers local municipalities to provide C-PACE as a funding tool.

PACE financing is repaid as an assessment on the property’s regular tax bill and is processed the same way as other local public benefit assessments (sidewalks, sewers, etc.) have been for decades.

Until federal legalization occurs and SAFE banking passes, FDIC-insured banks and traditional investors are prohibited from financing cannabis projects and companies.

“Many financing options that do exist tend to come with double-digit interest rates,” warned Upwise Capital Managing Partner Joe Lustberg. “Even the largest multistate operators are taking on capital with interest rates of …

Full story available on Benzinga.com