- REZYFi is a growth mortgage origination and specialized financing company in the U.S. that primarily serves licensed and permitted cannabis companies and owners of real estate who lease to cannabis companies
- Entrepreneurs have for a long time faced barriers to starting cannabis businesses, including lack of access to capital, a two-tiered regulatory system, and an uneven playing field
- Some cities in states where medical and recreational use of marijuana is legal are working to eliminate the barriers to entry, such as Sacramento, California’s CORE program
- The CORE program offers benefits such as business plan development, coaching on access to capital, technical training, data and research strategies and support, market assessment, loan readiness assessment, and more
- By primarily targeting the cannabis sector, REZYFi is providing access to capital and complementing state-led programs for cannabis entrepreneurs
Cannabis entrepreneurs have long been locked out of traditional sources of capital – from government loans disbursed through the U.S. Small Business Administration to traditional banks. But lack of access to capital is just one of the many barriers to entry that scores of aspiring cannabis business operators face all over the United States. Others include the two-tiered federal and state regulatory system and an uneven playing field for entrepreneurs from minority groups (https://ibn.fm/4vppg), just to mention a few.
In addition, the limitations extend to residential and commercial mortgages, which are mostly federally backed and are, therefore, subject to federal law (https://ibn.fm/pSTGl). Cannabis businesses and owners of real estate leased to cannabis companies are often unable to get approvals for mortgage loans and financing because they are not allowed to factor income from marijuana-related operations, which can be termed as illegally derived, at least federally (https://ibn.fm/rbR4M).
The origin of these long-running issues traces back to the Controlled Substances Act of 1970, which classifies marijuana as a Schedule 1 drug, a category reserved for substances with a high potential for addiction and abuse and no accepted medical use (https://ibn.fm/UXmOh). Yet, over the years, studies have evidenced that cannabis and its non-psychoactive derivatives have certain therapeutic benefits (https://ibn.fm/3e4TM).
Although marijuana use is criminalized at the federal level, many states have legalized it. As of February 3, 2022, 37 states had allowed the medical use of cannabis products, while 21 states had enacted laws to regulate non-medical adult use as of November 9, 2022 (https://ibn.fm/Ko2YA). Some states have even taken extra measures, with California Governor Gavin Newsom, for example, recently signing several bills to strengthen California’s cannabis laws (https://ibn.fm/xgft2). At a more localized level, cities are also taking steps to bolster the business environment for cannabis entrepreneurs, enabling them to take advantage of state-sanctioned freedoms.
The City of Sacramento, for instance, launched its Cannabis Opportunity Reinvestment and Equity (“CORE”) program to help eliminate the barriers to starting cannabis businesses. The program achieves this by offering business plan development, coaching on access to capital, technical training, data and research strategies and support, market assessment, loan readiness assessment, fiscal management, small business legal considerations, waiver of the permit fee, priority processing of the application, grants under the CORE Tiered Grant Program, and more (https://ibn.fm/nk8VB). And recently, the first cannabis business fostered by the Sacramento CORE program opened its doors (https://ibn.fm/EpQSv).
But what is still a constant headache for cannabis business operators, despite programs such as CORE, is the perpetual difficulty of accessing capital in the form of loans and mortgages from Federal Deposit Insurance Corporation (“FDIC”)-insured banks and financial institutions. At the same time, grants from the CORE Tiered Grant Program, for instance, are limited in terms of the amount of money that can be awarded and the number of qualified awardees that can receive the funds (https://ibn.fm/jWJ8Z). This represents a gap that REZYFi, a growth mortgage origination and specialized financing company in the U.S., seeks to fill.
REZYFi regards itself as a real estate-oriented mortgage company servicing the needs of both traditional and non-traditional consumers and businesses, but with a primary focus on the cannabis sector. The company mainly offers mortgage origination and specialized financing to licensed and permitted cannabis companies and owners of real estate who lease to cannabis companies.
Leveraging its team’s significant experience in a wide range of real estate and financing sub-sectors, the company is able to tailor financing packages to meet the unique needs of cannabis businesses. Along with its experienced management and staff, REZYFi boasts a network of independent brokers and licensed loan officers, as well as proprietary loan processing and back-office technology powered by machine learning. The technology, in particular, shortens loan processing timeframes and reduces inefficiencies and human errors associated with manual loan processing, underwriting, and servicing (https://ibn.fm/aHwPa).
With cannabis businesses and owners of real estate leased to cannabis companies finding it difficult to access funding in the U.S., REZYFi’s role in the ever-expanding market has never been more important. The company’s efforts are bound to complement and even boost government-led interventions in states like California.
For more information, visit the company’s website at www.REZYFi.com.
NOTE TO INVESTORS: The latest news and updates relating to REZYFi are available in the company’s newsroom at https://ibn.fm/REZY
InvestorWire is the wire service that gives you more. From regional releases to global announcements presented in multiple languages, we offer the wire-grade dissemination products you’ll need to ensure that your next press release grabs the attention of your target audience and doesn’t let go. While our competitors look to nickel and dime you with hidden fees and restrictive word limits, InvestorWire keeps things transparent.
As part of its service, InvestorWire provides coverage of noteworthy announcements. To further expand visibility of achievements being made throughout a multitude of sectors, InvestorWire’s syndication partners have extended the digital coverage to include individual broadcasts on financial websites and platforms visited by millions of investors daily.
For more information, please visit https://www.investorwire.com
8033 Sunset Blvd Suite 1037-IW
Los Angeles, CA 90046
InvestorWire is part of the InvestorBrandNetwork.