Cannabis has moved from the shadows of prohibition into one of Los Angeles County’s fastest-growing industries – and its economic footprint is impossible to ignore. In 2024 alone, California collected over $1 billion in cannabis tax revenue, with L.A. County representing a substantial share through sales, excise and cultivation taxes. Those dollars flow back into local budgets for education, public health and infrastructure, making cannabis not just a cultural shift but a fiscal engine.
At the same time, the cannabis economy is reshaping entrepreneurship. Unlike traditional sectors built on physical goods and long supply chains, cannabis operators are deeply tied to the attention economy – branding, lifestyle and cultural relevance drive demand as much as the product itself. For Millennials and Gen Z entrepreneurs, this alignment of cannabis with digital-first marketing, community identity and social equity programs makes it both a business opportunity and a movement. Cannabis startups operate like many other modern ventures: agile, culturally tuned and hungry for recognition in a crowded market.
On the federal stage, momentum is building. The SAFE Banking Act, advanced multiple times in Congress, points toward long-overdue reforms that would finally give cannabis-related businesses stable access to the financial system. Rescheduling discussions at the federal level also suggest an environment where regulatory barriers may ease, creating space for legitimate growth and mainstream acceptance. For L.A. County – already home to thousands of licensed cannabis businesses – this could unlock new investment, better compliance and stronger consumer protections.
And yet, despite its promise, cannabis remains in a paradox: an industry recognized and taxed by the state, celebrated by a new generation of entrepreneurs, but still underserved by the financial institutions that could help stabilize and scale it. This is where community banks must step forward. By advocating for sensible banking access, offering financial education and building tailored lending and service models, local banks ensure that cannabis businesses are not forced to operate in cash-heavy, high-risk environments. Supporting their growth means supporting job creation, tax revenue and economic resilience across L.A. County.
By helping clients move past the barriers that come with limited banking access, it is important for a bank to ensure that cannabis businesses can focus on what they do best – creating jobs, generating tax revenue and fueling innovation across Los Angeles County. Cannabis is more than a trend – it is a test of whether our financial system can adapt to new industries that are shaping the future. For community banks, the choice is clear: continuing to stand with these businesses is not just advocacy, it is an investment in the long-term prosperity.
Ryan Miklusak and Tim Rademaker are both vice presidents of cannabis banking at Mission Valley Bank, a community bank based in Sun Valley. Miklusak and Rademaker work at the Burbank branch.
