How to Obtain a California Business Loan

Now that California is a state that allows recreational use for cannabis many people are looking to cash in on the very profitable industry  known as cannabis. With only a uptrend of sales and profit in the industry, this business does not look like it’s going to fade away anytime soon. 

How does one start their own cannabis business?

Starting your own cannabis business is not as easy as something, though can be done if you meet the criteria of requirements. Then you will want to look into california cannabis business loans to help you with the start up of the business. 

But first thing is first let’s find out what documents you know from the government to even start up a cannabis business. 

  1. Bureau of cannabis control– They are who issue commercial licencing for you to open a retail store or legally sell cannabis.
  2. California Department of Food and Agriculture CalCannabis Cultivation Licensing who are responsible for licensing cultivators for adult cannabis use.

Now there are three licenses that you must obtain for full sale of cannabis use and third one is from the  California Department of Public Health’s Manufactured Cannabis Safety Branch, they supply the licensing for cannabis infused edibles as well as licenses the manufacturing companies who make them.

Next Step

So now that you have obtained all of the licenses needed to start a cannabis company, it’s time to look into getting a California business loan for cannabis. Now lenders are always interested in these kinds of business because the profit is very good, if you know how to properly run your business. Before going to a lender make sure you have all the paperwork with you so it makes the process easier. The following documents are needed if you want to look into getting a lender.

  1. Bank Statements- Lenders are going to want to see you have a steady stream of income. We recommend you have at least six months of worth of bank statements when going to meet with a lender.
  2. Credit check- Lenders are going to check your credit to make sure you have a good credit score. It is recommended that you have a credit score of 700 and higher. Also it is recommended that you do not make any big purchases before applying for a loan.  As some lenders might think it is to risky.
  3. Financial reports- Lenders are still going to want to see what your other finances look like. It is recommended that you bring at least 3 years worth of reports such as your previous income tax statements as well as any other bank accounts that you may have in your name. 
  4. BackGround Checks- Most importantly lenders will want to see background checks of you and anyone working for this business. You should hire clean background checks to prevent the lender from denying you a loan.

Make sure that you do this with a legitimate lender. You can not cut any corners to try and make this easier. The government watches on this market very hard and not having the correct licensing could cost you a lot of money in the long run and could get your business shut down.

Now that all of this is completed you should be able to receive a loan and and should be able to start your own business keep in mind you are going to want to keep tabs on the laws as they are changing very often. Other than that if you run a good business you should see a very nice profit coming in.


Alex is a small business blogger with a focus on entrepreneurship and growth. With over 5 years of experience covering the startup and small business landscape, Alex has a reputation for being a knowledgeable, approachable and entrepreneurial-minded blogger. He has a keen understanding of the challenges and opportunities facing small business owners, and is able to provide actionable advice and strategies for success. Alex has interviewed successful entrepreneurs, and covered major small business events such as the Small Business Expo and the Inc. 500|5000 conference. He is also a successful entrepreneur himself, having started and grown several small businesses in different industries.