Cannabis financial services firm Safe Harbor cuts $1.2M liability

Cannabis industry finance company SHF Holdings, doing business as Safe Harbor Financial, has eliminated $1.2 million of indemnity liability through a four-year extension and modification of its agreement with Partner Colorado Credit Union.

The eradicated indemnity liability, which was on the company’s balance sheet as of Sept. 30, went into effect Jan. 1, 2025, according to a Tuesday news release.

Colorado-based Safe Harbor will continue to facilitate loans for its clients with Partner Colorado Credit Union (PCCU) and will no longer be required to record a loan loss reserve on its income statement, the release noted.

“The modified agreement with PCCU represents a positive and pivotal development for Safe Harbor,” Safe Harbor CEO Sundie Seefried said in a statement.

Seefried said the updated agreement simplifies Safe Harbor’s business processes and better aligns expenses with income while addressing exposure to contingent liability on its loan portfolio.

“By adjusting our fee structures and eliminating loan indemnification,” she said, “Safe Harbor is well-positioned to drive improved financial performance and deliver increased value to shareholders.”

Safe Harbor serves more than 600 cannabis clients in 40-plus states and has executed more than $20 billion in transactions.

In December, Safe Harbor loaned $500,000 to PI 51^st Avenue so the Denver-based cannabis operator could invest in energy-saving lighting and other equipment to improve operational efficiency and sustainability.