In Massachusetts a cannabis company has successfully received a loan from Needham Bank to complete the construction of their cultivation and manufacturing facility in Lynn. Bostica, LLC is taking advantage of loans that are offered through a specialized banking division of Needham Bank providing full-service banking to cannabis businesses. The funds are going to help the company finish construction and hopefully become operational by early 2023.
The details of the loan are not disclosed but according to a press release the bank did hire Michelle Haughton, VP of Structured Finance, to handle cannabis-related business loans greater than $10 million in commitment size. In a video of the groundbreaking ceremony in May of 2021 posted on Bostica’s website Lynn Mayor Tom McGee did call the project a, “$20 million dollar investment.”
Needham Bank acquired control of Eastern’s cannabis banking and money service businesses earlier this year. Needham Bank says that they are the only bank in Massachusetts that has received formal approval from the Federal Reserve Board to provide banking services to marijuana-related businesses. Bostica was established in 2018 by father and son team Ray and Jarrod Falite.
Find the full press release from Needham Bank here: https://www.needhambank.com/about-us/news/needham-bank-closes-cannabis-loan-to-bostica-llc-1414