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Needham Bank Closes Cannabis Loan to Bostica

August 26, 2022, 08:03 AM
Filed Under: Cannabis

Needham Bank announced it has closed a cannabis business loan to Bostica, LLC, a premium cannabis cultivator and manufacturer of cannabis products.

Bostica will use the financing to complete the construction of their 60,000-square-foot cannabis cultivation and manufacturing facility in Lynn, MA. Needham Bank also provided working capital to support Bostica's operations.

"We are excited to provide this lending to Bostica, LLC and help them build a state-of-the-art cannabis facility," said Michelle Haughton, Vice President Structured Finance. "Needham Bank has had a long-standing desire to serve the banking needs of the marijuana sector, so I'm glad we are providing financing to businesses like Bostica."

When completed, the project will be the largest, most technologically advanced and energy-efficient indoor marijuana cultivation facility to operate in the Greater Boston area. The facility includes a 35,000-square-foot canopy for cannabis, which has ideal growing conditions 24/7. Bostica's specialty crafted cannabis products will be available for sale at dispensaries in early 2023.

"Obtaining this loan from Needham Bank allows us to complete construction and equipping of our cannabis facility, ultimately supplying premium-quality products to meet Massachusetts' growing demand," said Allen Schweitzer, Chief Financial Officer of Bostica. "It's been a pleasure working with the Needham Bank team because they understand the particular intricacies of lending to this specialized industry."

Haughton was hired at Needham Bank to assist with the growth of the Commercial & Industrial Structured Finance segment. This includes handling cannabis-related business loans greater than $10 million in commitment size and advising borrowers on financing and cash management services. She has over 20 years of commercial lending experience, and most recently, was Vice President, Relationship Manager at Eastern Bank, where she developed lending relationships with creditworthy commercial clients and prospects.

Through the new specialized banking division, Needham Bank offers full-service banking for cannabis businesses, including loans, deposit accounts and cash management services. Needham Bank is the only bank in Massachusetts to receive formal approval from the Federal Reserve Board to provide banking services to marijuana-related businesses.

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