SHF Holdings, Inc. Originates Three New Loans to Tier One Multi-State Operator
July 27, 2023 at 08:00 am
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SHF Holdings, Inc. announced that the Company has increased its lending and deposit relationship with a tier one multi-state operator by originating three new loans for affiliates of the MSO in the aggregate amount of $4,282,000. The loans were secured by retail assets in three additional limited-license markets in which the MSO operates. The Company had previously announced in May that it had originated four commercial real estate-backed loans for subsidiaries of the tier-one MSO.
The approximate amount for the loans was approximately $5.5 million aggregate and are secured by a first deed of trust on four retail dispensary locations in a key limited-license state. The Company also announced an expanded relationship with the tier-one MSO in June through the origination of an additional first lien-secured loan in the approximate amount of $2.9 million on a cultivation facility located in a major adult-use cannabis market. The current loans are in accordance with the same lending commitment as previous loans provided to the MSO, offering the same market-leading terms?including a fixed interest rate, five-year term and a 25-year amortization period?for permanent financing of the MSO?s critical assets.
SHF Holdings, Inc. is a service provider to offer compliance, monitoring, and validation services to financial institutions, providing traditional banking services to cannabis, hemp, cannabidiol (CBD), and ancillary operators. Its services include regulatory compliance consulting and software for maintaining Know Your Customer (KYC) and Bank Secrecy Act (BSA) compliance to financial institutions, principally conducted vis-a-vis its financial services platform; the origination, onboarding, verification, and servicing of cannabis-related deposit business for and on behalf of its partner financial institutions; and sourcing, underwriting, servicing, and administering loans issued to cannabis businesses and related entities, which are often also its customers, as well as being customers of its partner financial institutions. Through the Companyâs platform, its financial institution clients can provide cannabis-related businesses (CRBs) with access to traditional financial services.