vestwell vestwell vestwell
  • About
  • Contact
  • Testimonials
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Monday, May 23, 2022
No Result
View All Result
CALIFORNIA BUSINESS JOURNAL
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
CALIFORNIA BUSINESS JOURNAL
feat 2

Traditional Banks Won’t Lend to Cannabis Industry Companies. But eQcho Capital Will.

With banks ignoring the burgeoning and underbanked $55B ‘weed’ industry because of fickle laws, Robert Kerr created an alternative funding source for it.

by Victoria Kertz, Staff Writer, California Business Journal
A A
Share on FacebookShare on Twitter

As a banker in Portland, it wasn’t unusual for Robert Kerr to field inquiries from dozens of cannabis industry executives. After all, Oregon was the first state to decriminalize possession of small amounts of marijuana and among the first to legalize the sale of it. But as a lender at Opus Bank, he couldn’t give them a penny.

Traditional banks can neither accept money from nor loan to marijuana-related companies. The federal government considers marijuana to be a “Schedule 1” drug, in the same category as cocaine, even though 33 states currently offer a legalized version of the cannabis product. Laws vary depending on the state, but none of them offer an easy banking solution to growers or retailers. All the while, sales of the cannabis plant and its end products continue to soar.

Taking note, Kerr left his post of 20 years and began gathering savvy investors (some of which he calls “alternative sources”). “The need for capital was quite high and they lacked someone with capital, but they also lacked someone with knowledge,” he says. So he founded eQcho (pronounced “echo”) Capital and now from his home office in rural Washington near the Oregon border, he lends to this “underbanked” industry. But not just in the Pacific Northwest. “Anywhere it’s legal – medicinal or recreational – we can work with them,” he says.

“Time is of the essence,” Robert Kerr says of the rapidly growing cannabis industry. “Everyone is racing to see who will be the players in this space,” but Kerr reminds his clients and investors that big ships like the U.S. government don’t turn fast and neither do traditional banks
“Time is of the essence,” Robert Kerr says of the rapidly growing cannabis industry. “Everyone is racing to see who will be the players in this space,” but Kerr reminds his clients and investors that big ships like the U.S. government don’t turn fast and neither do traditional banks

His clients, 99 percent of which are in the cannabis or hemp business, are typically referred to him by banks or other lending agencies. They most frequently require real estate or heavy equipment loans, particularly the growers or those running an extraction facility. “Our investors understand that owning the real estate makes sense,” he states.

Kerr has seen his share of truly green (no pun intended) business people trying to get rich quick, both on the retail and the lending side. “There are pretenders,” he laments, but Kerr positioned eQcho in a different light. Clients are not just loaned money, they gain a financial advisor in Kerr’s two decades of lending expertise. “I have a fiduciary responsibility to them. My job is to do what’s in the best interest to them. I understand what a lender wants to hear, that’s my value,” he says. “You take on a client over a period of time. You’re trying to help supply all of their financial needs. You become an advisor and help them grow.”

Kerr walks clients through a myriad of banking processes and even advises them on issues like escrow. He knows the future of cannabis lending will require more than just deep pockets. There are varying restrictions to keep track of in each state and the federal 2018 Farm Bill that legalized the cultivation of hemp, an ingredient in Cannabidiol or CBD oils.

“Time is of the essence,” he says of the rapidly growing industry. “Everyone is racing to see who will be the players in this space,” but Kerr reminds his clients and investors that big ships like the U.S. government don’t turn fast and neither do traditional banks. Still, there is an urgency. eQcho was created due to the lack of funding resources, and quite honestly, I have to create a portfolio of accounts or I’ll get squashed.”

The next evolution of eQcho? “Instead of using other people’s sources of capital, we will have our own source of capital,” Kerr says.

Becoming a direct lender is his ultimate goal and he’s considering mergers or other collaborations. While multiple groups have shown interest in backing eQcho, Kerr knows the most valuable asset is himself.

“The cannabis industry needs someone that can understand their space, understand who they are and what they’re about, but at the same time also understand lending.”

Kerr is that person right now, bridging the gap between capital investors and the marijuana business in some very large California-based transactions.

He predicts the cannabis industry will resemble the beer industry in about five years. There will be major players like Anheuser-Busch or Coors and there will be smaller providers like today’s microbreweries. “The players that decided who their end consumer is are more successful,” he points out. Those who haven’t mapped out their demographics are ones Kerr isn’t excited to do business with.

It’s actually the companies that want to improve natural remedies that he is most passionate about. “I’m a big believer in medical cannabis,” he says. “I’m a big believer in the medical benefits of the plants.”

ADVERTISEMENT

He cites advances in marijuana-based treatments for epilepsy and cancer. “If groomed correctly, these companies can really take a big bite out of western medicine.”

An educator at heart, Kerr also wants to better his client base. He’s working on a series of four to seven videos to help cannabis companies better understand and prepare for working with banks. Each will focus on subjects like how to fill out lending applications and personal financial statements.

“They’ll break down how a lender thinks,” says Kerr, who has a Master’s Degree in Education. “This way, the industry can learn and be better about speaking the lenders’ language.”

Copyright © 2019 California Business Journal. All Rights Reserved.

Traditional Banks Won’t Lend to Cannabis Industry Companies. But eQcho Capital Will.
Traditional Banks Won’t Lend to Cannabis Industry Companies. But eQcho Capital Will.
Traditional Banks Won’t Lend to Cannabis Industry Companies. But eQcho Capital Will.
Traditional Banks Won’t Lend to Cannabis Industry Companies. But eQcho Capital Will.
Tags: 20182018 Farm Billalternative funding source for cannabis companiesbanksBanks ignore the cannabis industrybeerCaliforniacancercannabisCBDeducationeQchoescrowEstatefederal governmentfiduciaryfinancial advisorfocusfundinggreeninvestorslendersloanloansmarijuanamedicalMedical Cannabismedicinenaturalportfolioreal estateRobert Kerrwhy banks ignore cannabis companies
ADVERTISEMENT
Victoria Kertz, Staff Writer, California Business Journal

Victoria Kertz, Staff Writer, California Business Journal

In addition to writing for CBJ, Victoria has written for Laguna Beach Magazine, Newport Beach Independent, Saute Magazine, The Fullest, Local Dish Magazine and Blue Sky The Color of Imagination. She holds a business degree from Appalachian State University.

Related Posts

Dr. Bao Le and his son Andrew
How Dr. Bao Le Saved His Son's Life ... With Cannabis
How to safely store medical cannabis seeds
How to Safely Store Medical Cannabis Seeds
California Cannabis Taxes for Budding Entrepreneurs
California Cannabis Taxes for Budding Entrepreneurs
How Kratom Affects the Heart
How Kratom Affects the Heart
Cannabis Consumption Methods
A Guide to Cannabis Consumption Methods
Best-Dry-herb-vaporizer-for-CBD-flower
Dry Herb Vaporizers: The Different Types
top-marijuana-vaporizers
How To Choose Your First Dry Herb And Concentrate Vaporizer
photo_john_schaeffer
The Original Environmentalist
advertisement
Facebook Twitter LinkedIn Instagram LinkedIn

Advertise With CBJ

1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Marketing
  • Medical
  • News
  • Newsletter
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • Gavel, scales of justice and law books

    Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    0 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • New Study: California’s 10 Universities That Produce the Most CEOs

    0 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0
  • The Only Way

    0 shares
    Share 0 Tweet 0
  • Is Virtual Financial the Future of Financial Services?

    0 shares
    Share 0 Tweet 0
  • How to Start a Telecommunication Business: A Step-By-Step Guide

    0 shares
    Share 0 Tweet 0
  • Best Crypto Faucets You Can Try In 2021 and 2022

    0 shares
    Share 0 Tweet 0

Latest Articles

Chicago

What You Should Not Miss When Visiting Chicago

Personal injury

What can I expect my personal injury protection to cover

las vegas

3 Tips to Win More Money When Visiting Las Vegas

How Can You Put Green Papua Kratom To The Best Possible Use -- Pexels.com

How Can You Put Green Papua Kratom To The Best Possible Use

arbitrage betting

How to Find the Best Arbitrage Betting Opportunities

Santa Monica, California

The Middle Class: 5 Best Places to Live in Los Angeles for Families

high heels banned in carmel, california2

Some of the Most Unusual Laws You’ll Ever Experience in the UK and California

Contractor

How To Find a Trustworthy Contractor

Online Bingo Tips

Online Bingo Tips For Beginners: How To Play And How To Get Free Spins

John Cooke, Partner, Bergston LLP

The Legal Side of Things: Business Profile on John D. Cooke, Bergeson, LLP

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR