What drew you to the cannabis industry?
As a recovering alcoholic , I found that cannabis was a healthy alternative for me. At the same time, being a person who doesn’t drink in an industry where one of the main tenets is drinking can be really difficult and isolating. There are tons of events where you walk in the door and are handed a glass of champagne; I’m immediately left out of the customer experience. So, I saw this as a real opportunity to bring a healthy alternative to private events and give people who don’t want to have a drink the option to imbibe in another way. Being able to bring that option to private settings is part of our mission and a really personal goal for me.

What excites you about the cannabis industry?
Working directly with small, craft growers is really exciting. Whether we’re helping them throw their own event or incorporating their products into private events or weddings, I love being able to help these smaller operations get more exposure and break through to some customers. These small events are great opportunities for us to talk directly with consumers about these new brands and their high-quality products without it being a more formal marketing event.

What are the biggest challenges facing your business?
Because cannabis is still relatively new in Illinois and because it’s still federally illegal, we are limited in the venues that will let us hold events. But it’s not even just events: right now, we’re working on trying to secure our own space here in Chicago and there’s some bureaucratic confusion when it comes to zoning. We keep getting bounced back and forth between departments because we’re a new type of business in a new industry. We’re missing some clarity when it comes to consumption rules in Chicago, particularly for events. I’d like to see a very clear process put in place for hosting cannabis-forward events: here is the office responsible for the permitting, here are the requirements and fees, here’s where you can have the events. If a brewery was hosting an event, you’d be shocked if they weren’t serving beer. Cannabis events ought to be treated the same way.

What can we expect from this year’s ICANN PAC event?
It’s going to be an elegant event providing attendees with meaningful networking opportunities with government officials and members of the industry…and plenty of opportunities to sample cannabis products! We’re going to have tons of delicious infused edibles and an interactive joint-packing station where attendees can see the flower they’re picking and get a custom joint rolled to either enjoy at home or in the private courtyard at the event. And we’ll of course have my favorite: infused beverages, which are probably the most popular item at our events and a great substitute for alcohol.

Learn more about the ICANN PAC event and register here

What excites you about the cannabis industry?

This industry is very new, so we’re seeing a lot of really interesting innovation. Because our solutions provide time back to the staff,, I see a lot of them creating something entirely new and interesting and better for their customers. It’s always fascinating to see how different organizations take that time and resources and put them back into their organization.

There are a lot of companies that have created fascinating customer experiences by removing that sort of transactional element of cash out of the process. Seeing those changes is what really gets me excited.

There are a lot of companies that have created fascinating customer experiences by removing that sort of transactional element of cash out of the process.  Seeing those changes is what really gets me excited.

What are the biggest challenges facing your business?

We operate all over the US, so we must navigate different regulations and laws on a state-by-state basis. As a result, it can be difficult – not just for us but for our clients – to standardize processes, to scale and to grow. This is a very new industry with a lot of new businesses – some of which are making their first entrance into running a company – so any barriers to growth can be tough to overcome. 

What changes could help you be more successful in Illinois?

We would love to see more standardization when it comes to payments and banking. It can get a complicated when you process electronic transactions and deal in large volumes of cash while trying to follow a slew of regulations. So, the easier that system can be, the easier it is to stay in compliance and stay transparent.

What sort of information does Metrc track?

To be as useful as possible, the information we track has to be very granular: what seeds are used, how they grow, when a plant gets cut, etc. In the event of an issue, this allows the system to pinpoint the affected products that need to be pulled from the market, rather than issue a major blanket recall.

The system also has safeguards built in, so if a product fails tests at any step of the process, it cannot continue moving through the supply chain until the issue is addressed. So, businesses are in essence automatically compliant because the system won’t let them act on something if there is an issue.

Another huge focus for partner states that Metrc helps with is tax collection. Because the system tracks all sale information, state departments of revenue can look directly at that data and reconcile it with a business’ tax receipts.

What excites you about the cannabis industry?

Solving complex problems like this is exciting for a brand-new industry, with a huge learning curve. The cannabis industry is at the forefront of supply chain transparency, in large part because of systems like ours. Most industries – even other highly regulated ones – don’t have this level of real-time data and tracking, so it’s an innovative system with potential implications for other markets as well.

What role does your company play in servicing the cannabis industry and how did that start?  

INB started its program in 2019 after hearing stories about and researching the movement of cash in the industry. Management believed it could create a program that would provide a secure solution to the movement in cash and give licensed operators access to some traditional banking services previously unavailable to many Illinois cannabis-licensed businesses.

We offer most of our traditional deposit services to licensed operators by working with couriers who specialize in cash-in-transit services designed specifically for the licensed-cannabis trade. We have offered loans on a limited and very conservative basis when there is real estate involved.

As a bank working in the cannabis industry – which is still not legalized at the federal level – explain how INB is able to operate here in Illinois.

The US Department of Treasury issued guidance through its Financial Crimes Enforcement Network (FinCEN) that set certain rules for banks who are receiving cash proceeds from or suspected to be tied to cannabis-related sales in states with licensed sales. INB’s primarily regulator, the Office of the Comptroller of the Currency (OCC) is also a division in the US Department of Treasury, each of which do not necessarily condone the open banking of cannabis-related cash, but require the bank to comply with the rules established by FinCEN and other traditional anti-money laundering regulations.

Why did INB get involved in the cannabis industry?

There are very few industries facing cash-logistic challenges like the cannabis industry. Banks were built to keep depositors’ money safe and provide financial services to protect the flow of its customers hard-earned gains. Our management team prides itself on finding innovative solutions for our customers and being on the forefront of new technologies and financial solutions. While INB started with a small, community bank charter, it began essentially as a start-up operation in the Capitol City and grew to compete with many older, established financial institutions

What excites you about the cannabis industry?

The cannabis industry presented an opportunity to meet new people who also faced unique challenges as they grew their businesses from the ground up in a heavily regulated industry much like the heavily regulated financial industry. The energy our licensed cannabis customers present when they discuss the unique paths to finding capital, building their operations and their difficulties working solely with cash is contagious. We share the excitement and relief that many of our customers experience when they feel the liberation that our cash logistics and banking services provide.

What are the biggest challenges facing your business?

There is a lack of diversity of services, which presents monopolies on pricing for certain services. Debit cards remain an issue, despite our continued pursuit with Visa to open their rails to licensed-cannabis operators. Loans are often difficult to extend because they are harder to wind-down if our regulators or the federal government changes its (somewhat) hands-off approach to banks in the cannabis space. We can close checking accounts, but we cannot really just exit loans that easily. This is a challenge for every bank looking to bank the cannabis industry. Loans are also difficult to make without real estate collateral, and the value of the collateral is hard to ascertain for very specialized projects such as cannabis cultivation and dispensaries (no standard appraisal rules or bases for cannabis industry operations).

As a company that services cannabis businesses, how has CBAI membership been valuable?

The Association can lobby for many of the obstacles we also face, but the education and access to other resources provide additional avenues for greater knowledge that can benefit our existing customers.

What guidance would you give to someone considering entering the cannabis industry?

People entering the industry understandably have so many questions, not only because they’re new to the industry, but because the industry itself is so new and still federally illegal. The biggest piece of advice I give them when dealing with a competitive application process is: be prepared for delays. It’s the unfortunate reality of the cannabis industry across the country, that with the byzantine regulatory structures,  politics and lawsuits, there are invariably delays. We see this of course in the delay in issuing new competitive dispensary licenses in Illinois. The more you’re prepared for it, the better you can manage it.

What excites you about the cannabis industry?

Because we’ve been involved in it from the start, we’ve really seen the entire industry form and grow around us. I’ve been in law for almost three decades and it’s very satisfying to still be finding solutions to new issues that arise every day, whether it concerns restrictions on advertising, constitutional challenges to agency regulations, or navigating a new state that legalized marijuana.  Every day seems to be a great legal challenge.

It’s also been really satisfying to see our clients grow and succeed. I still remember introductory meetings almost a decade ago with small would-be cannabis license applicants that are now public companies. To be a part of that success is really special.  Now we just need to see that happen again when and if the next round of licenses are finally issued.  There are so many talented applicants being held back right now, but I’m really excited to see them succeed when they are finally licensed. 

What excites you about the cannabis industry?

Because the industry is still very young, the opportunity is incredibly exciting, not only in terms of business growth, but in terms of working with clients to build unique and custom projects. The technology is changing daily as well as the speed and sophistication of processes and best practices.

 What are the biggest challenges you face?

I always say that good designers get inside their client’s head and help them articulate that which they can’t do themselves on paper.  That means the future of dispensaries really depends on the experience our clients want their customers to have: do they want it to be a type of self-serve store or do they want it to feel more high-end and service-focused? Ultimately, I think you’re going to see both: groups that are interested in selling volume and groups that are interested in selling an experience.

We have to remember that, in Illinois, most of the dispensaries that were here seven years ago were medical and were focused more on satisfying the regulatory requirements than visual appeal. So, as a result, they ended up looking a lot like doctor’s offices. Our initial three projects were experiential and wellness focused.  Many others have followed that lead.  Going forward, I think it’s going to be very interesting to see how dispensaries evolve.

What are the biggest challenges facing your business?

The biggest obstacle we’re encountering is the challenge businesses everywhere are facing: supply chain issues as a result of the COVID pandemic. I’ve been in this business for more than 32 years and right now this environment is truly unprecedented, particularly as there is such a high demand for construction work, materials as well as labor.