Topic: Banking Marijuana-Related Businesses
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We received a loan request from a medical marijuana start-up (which is not located in Illinois but in another state where medical marijuana has been legalized). Since this is still illegal at the federal level, do you see any issues with making this loan?
We spoke to an attorney with the Federal Reserve Board who told us that the FRB saw high legal and reputational risks in making loans to marijuana dispensaries. He also noted that the FRB is holding off on issuing formal guidance about this issue until the Department of Justice states whether it will be enforcing…