VSECU officials say pause on new cannabis accounts likely ‘temporary’

Published: Aug. 26, 2022 at 3:24 PM EDT
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BURLINGTON, Vt. (WCAX) - Officials with the Vermont State Credit Union on Friday clarified that their recent decision to put a hold on new cannabis business accounts is only likely temporary.

With Vermont’s retail cannabis market poised to become fully operational later this fall, the credit union recently announced it’s no longer taking on new cannabis businesses due to what they called a “sudden spike in cannabis accounts.” The industry is expected to pump millions into the local economy, but will require cooperation from key financial institutions.

Robert Miller, VSECU’s CEO on Friday said they’re still interested in expanding, but are putting things on hold until they can meet the demand. ”And 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,” he said

He says VSECU has been serving medical cannabis businesses for years and that they have over 80 existing cannabis financial accounts.

Retail license applications are now able to be submitted to Vermont’s Cannabis Control Board. The state can begin issuing those licenses on October 1. Once a retail license is issued, cannabis will be available for sale in the Green Mountain State.