Colorado is known for its gorgeous outdoor spaces, innovative ideas, and recently, recreational marijuana. There has been a boom in cannabis business throughout Colorado. 

If you want to get started with a cannabis business in this gorgeous state, you’ll need financing as well as licensing. Here’s what you need to know about applying for Colorado cannabis business loans.


You will be licensed differently depending on whether you are opening a medical marijuana company or a recreational retail center.

Retail Licensing

  • Retail store
  • Cultivation
  • Product manufacturer
  • Testing facility
  • Transporter
  • Operator

 Medical Marijuana

  • Medical Center
  • Optional premises cultivation
  • Marijuana-infused product manufacturer
  • Testing facility
  • Transporter
  • Operator
  • Research and development facility or cultivation

To be licensed, there are a few criteria that you need to meet. Licensing is somewhat more stringent in Colorado than it is in some other states where marijuana is legal. Think carefully about whether this is where you want to set up shop. 

Be sure to also check regulations on the counties where you want to operate. Some of these counties have opted out of legalization so you won’t be able to operate a cannabis-related business in these dry counties.

  • 21 years old
  • Must have lived in Colorado for at least two years before applying for the license
  • Financial partners and employees that are associated with your business must also be 21 and have lived in Colorado for at least two years
  • No convictions for controlled substances for the past ten years for anyone associated with your business
  • Preferably, all of your associates will have entirely clean records for controlled substances
  • $4,000 along with state and local fees which may be additional
  • Demonstrated understanding of compliance with the state and local regulations

Where To Borrow

Despite the fact that cannabis is legal throughout Colorado (with the exception of dry counties), you won’t be able to borrow money for your cannabis business from most banks in the state. Cannabis is still illegal federally, so banks won’t take a risk with loaning to a cannabis business. Any loans for any reason to a company that is associated with cannabis can result in charges of money laundering.

Thankfully, financial institutions have developed to meet the demand for financing throughout the cannabis industry. These institutions know how to work with state and federal regulations to award funding to cannabis businesses.

Don’t settle for a financial institution that charges astronomical interest rates as high as 40 or 50%. The Cannabis industry in Colorado is highly lucrative, but it doesn’t justify those kinds of interest rates. You can find a financial institution willing to lend you enough money to start your cannabis industry at significantly lower interest rates. 

Applying For A Loan

When you’re ready to apply for your cannabis business loan, be sure that you have all of your financial records available as well as necessary information about employees and your company. Here are records that you will need to provide:

  • Balance sheets
  • Income statements
  • Bank statements
  • Credit risk profile
  • Capital needs

Apply For A Colorado Cannabis Business Loan

The Colorado Cannabis business is truly exploding. Even better, this is an absolutely beautiful place to live with a very high quality of life. For entrepreneurs looking for a new legitimate way to make a lot of income and willing to live in Colorado for at least two years before they begin to earn, a Colorado Cannabis business is a great idea. Be very careful when you choose your financing. Only pick the most responsible institution. If the institution you’re borrowing from isn’t checking backgrounds and looking deeply into your business plans, be very cautious about their legitimacy.