FundCanna Secures $60M Credit Line to Expand Cannabis Lending

The Facility Terms and Structure

FundCanna's $60 million credit line comes from an undisclosed institutional lender and will be deployed across the company's three core lending products. It's structured as a revolving credit line with a three-year term. The deal includes provisions for upsizing to $100 million based on portfolio performance metrics.

The capital will support:

• Equipment financing for cultivation infrastructure, processing machinery, and point-of-sale systems
• Working capital loans ranging from $50,000 to $5 million with terms up to 24 months
• Sale-leaseback transactions on commercial real estate owned by cannabis operators

FundCanna has originated more than $200 million in loans since launching in 2019, according to the company. The new facility represents a 30% increase in available lending capacity.

Why Cannabis Operators Still Need Alternative Lenders

Despite the SAFE Banking Act's repeated failure in Congress, cannabis businesses in 38 state-legal markets continue to operate with limited access to traditional credit. Federally chartered banks and credit unions face regulatory risk under the Controlled Substances Act, leaving most operators dependent on cash operations or high-cost alternative financing.

This deal signals institutional capital is betting on federal rescheduling momentum. The DEA's proposed rule to move cannabis from Schedule I to Schedule III remains under OMB review as of May 2026, with a final rule expected by Q3. Rescheduling wouldn't legalize cannabis federally but would eliminate the threat of federal prosecution for banks serving state-legal businesses under FinCEN guidance.

FundCanna's average loan carries an interest rate between 12% and 18%, compared to 6% to 10% for conventional small-business loans. That spread reflects the legal risk premium and the lack of FDIC-insured deposit funding.

Market Conditions Driving Demand for Cannabis Debt

Cannabis operators are seeking debt over equity as public-market valuations remain depressed and venture capital has pulled back from the sector. The AdvisorShares Pure US Cannabis ETF is down 42% year-over-year as of May 2026. Several multi-state operators have traded below book value for 18 consecutive months.

Debt financing allows operators to avoid dilution while funding expansion, compliance upgrades, and inventory buildouts ahead of peak retail seasons. FundCanna's portfolio skews toward small and mid-sized operators with $2 million to $20 million in annual revenue, a segment underserved by the handful of public cannabis lenders like AFC Gamma and Chicago Atlantic Real Estate Finance.

For context on how capital constraints shape the industry, see the CannIntel topic hub on Cannabis Banking & Finance.

What to Watch

The next signal for cannabis credit markets is the OMB's release of the DEA's final rescheduling rule, expected between July and September 2026. If rescheduling takes effect, federally insured banks will likely enter the market within 12 to 18 months, compressing interest rates and forcing alternative lenders to compete on service speed and underwriting flexibility rather than access alone.

FundCanna's ability to deploy the full $60 million by year-end will depend on whether operators can maintain positive cash flow in states like California and Michigan, where wholesale prices have fallen 60% since 2021. The math is simple: loan performance hinges on operator survival, and operator survival hinges on margin recovery or federal tax relief under 280E reform.