The Vermont credit union that announced last week it would stop accepting cannabis accounts due to an uptick in applications said that the pause is likely temporary. Vermont State Credit Union (VSCU) CEO Robert Miller told WCAX that the pause was necessary in order for the financial institution to meet its current demand.
“I fully intend that this is going to be temporary. I don’t have a timeline in terms of when we will be making that available again. But fortunately, we have been traditionally the really, the only financial institution serving the industry previously.” — Miller to WCAX
The increase in demand for accounts comes as Vermont gets ready to launch adult-use sales on October 1.
James Pepper, chair of the state’s Cannabis Control Board (CCB), told WCAX last week that the credit union’s decision is not surprising as it had said in July that 50 to 75 cannabis accounts would be “doable” but 200 to 300 would be a “risk.”
On its website, the CCB lists just four financial institutions that open cannabusiness accounts, including VSECU, New England Federal Credit Union (NEFCU), Vermont Federal Credit Union, and Dama Financial. Pepper indicated that NEFCU “has the capacity” to open accounts for cannabis industry operators.
The agency notes that if applicants “can document their unsuccessful good faith efforts to open a bank account, they may still apply for licensure by submitting a cash management plan along with their application.”
Applicants are required under the state’s legalization law to make a “good faith effort” to open a bank account as part of the application process.
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