Safe Harbor Financial Announces New Small Business Line of Credit Program with the Origination of Three New Lines of Credit
Rhea-AI Summary
Safe Harbor Financial (NASDAQ: SHFS) has launched a new small business line of credit program. The program began with the origination of $550,000 in lines of credit to three long-standing clients in Colorado's cannabis industry. CEO Sundie Seefried highlighted that these lines of credit are offered at reasonable terms and aim to address the needs of small and mid-sized cannabis businesses, which are often overlooked by traditional financial institutions. The lines of credit issued do not require real estate collateral and utilize flexible underwriting standards, which distinguishes Safe Harbor's offerings from other financing sources in the cannabis sector.
Positive
- Launch of a new small business line of credit program.
- Origination of $550,000 in lines of credit to three cannabis operators.
- Credit lines offered at reasonable, non-predatory rates.
- No real estate collateral required for the loans.
- Flexible underwriting standards used.
- Support for small and mid-sized cannabis businesses.
- Further expands the suite of offerings available on Safe Harbor's lending platform.
Negative
- Total origination amount of $550,000 may be considered low relative to larger financial programs.
- Potential risk associated with lending to cannabis businesses, which are often seen as higher-risk by traditional financial institutions.
News Market Reaction – SHFS
On the day this news was published, SHFS declined 4.29%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Originates Lines of Credit Totaling
GOLDEN, Colo., June 05, 2024 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced today the formal launch of its new small business line of credit program with the origination of new loans to three Colorado-based operators which are long-standing clients of Safe Harbor.
“We’re pleased to be able to offer our longstanding clients access to lines of credit at reasonable terms, an opportunity that is often not readily available to cannabis businesses,” said Sundie Seefried, Chief Executive Officer of Safe Harbor Financial. “Over the past two years, we have recognized increasing demand from small and mid-sized cannabis businesses as they are largely ignored by traditional financial institutions – even those that are currently lending to larger cannabis operators. The launch of our Small Business Line of Credit Program underscores our commitment to supporting the capital needs of the entire cannabis ecosystem and further expands the suite of offerings available on our lending platform.”
The three new lines of credit were issued at normalized, non-predatory rates, without real estate collateral, utilizing instead a flexible set of underwriting standards -- a key differentiator from many other available sources of cannabis industry financing. All three Colorado operators receiving funding are current clients of Safe Harbor.
About Safe Harbor
Safe Harbor is among the first service providers to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. Safe Harbor, through its financial institution clients, implements high standards of accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Over the past nine years, Safe Harbor has facilitated more than
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities laws. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S. and state laws, rules, regulations and guidance relating to Safe Harbor's services; Safe Harbor's growth prospects and Safe Harbor's market size; Safe Harbor's projected financial and operational performance, including relative to its competitors and loan performance; new product and service offerings Safe Harbor may introduce in the future; the impact of recent volatility in the capital markets, which may adversely affect the price of the Company's securities; Safe Harbor’s ability to make the same or similar loans in the future; the outcome of any legal proceedings that may be instituted against Safe Harbor; other statements regarding Safe Harbor's expectations, hopes, beliefs, intentions or strategies regarding the future; and the other risk factors discussed in Safe Harbor's filings from time to time with the SEC. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "outlook," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond the control of Safe Harbor), and other assumptions, that may cause the actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These and other risks are discussed in detail in the periodic reports that Safe Harbor files with the SEC, and investors are urged to review those periodic reports and Safe Harbor’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, before making an investment decision. Safe Harbor assumes no obligation to update its forward-looking statements except as required by law.
Contact Information
Safe Harbor Media
Nick Callaio, Marketing Manager
720.951.0619
Nick@SHFinancial.org
Safe Harbor Investor Relations
ir@SHFinancial.org
KCSA Strategic Communications
Phil Carlson
safeharbor@kcsa.com
FAQ
What is the new program launched by Safe Harbor Financial?
How much in lines of credit has Safe Harbor originated for the Colorado cannabis operators?
What distinguishes Safe Harbor's new lines of credit from other financing sources?
Who are the recipients of the new lines of credit?
Why is the new small business line of credit program significant for Safe Harbor?
What is the stock symbol for Safe Harbor Financial?
