Pelorus Equity Group, a California-based commercial real estate lender for cannabis-related businesses, said it has obtained a $ 20 million federally insured line of credit.
Pelorus said it believes it is the first company in the cannabis industry to obtain such a line of credit from a Federal Deposit Insurance Corporation. FDIC insured bank. That statement could not be immediately verified.
The FDIC is an independent agency created by Congress that insures deposits and oversees financial institutions to ensure their safety and soundness.
The company said the line of credit carries a low annual interest rate of 4.75% with no fees, depending on the qualifications of the business owner.
Pelorus CEO Dan Leimel credited the FDIC-backed line of credit as a result of the company’s “decades of commercial real estate experience” and the company’s “track record of success in cannabis.”
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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 allow 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 invested $ 225 million in cannabis deals.