For both sides
METRC
Federal and state law current as of September 2026 — verify with counsel.
Key takeaways
- A common seed-to-sale system. Exports are the revenue truth, not a vanity P&L.
- Use the term the way the regulator uses it.
- Do not import another state’s definition.
- Ask counsel before the LOI uses the word as a promise.
METRC is the file this page underwrites. A common seed-to-sale system. Exports are the revenue truth, not a vanity P&L. Federal and state law current as of September 2026 — verify with counsel. This is educational, not a guarantee of price, timing, approval, or financing.
Why METRC matters in a cannabis sale — what breaks METRC?
METRC is how a regulator or a CPA will test the file. A forum definition does not survive California or Pennsylvania.
How METRC is used correctly — what should you verify for METRC?
Used correctly, metrc is a condition you can point to in a statute, a lease, or a tax workpaper. If the LOI promises something the agency cannot honor, rewrite the LOI.
How METRC is misused — what breaks METRC?
METRC gets inflated in teasers and ignored in diligence. Diligence and transfer review exist to stop that.
| Use of METRC | Broker reading |
|---|---|
| METRC in a CIM | Must match the statute, not a slogan |
| METRC in an LOI | If it requires agency consent, say so |
| METRC in a model | Label ranges; do not hide 280E |
| METRC vs a neighbor word | Do not swap metrc for a look-alike term from another state |
File example that turns on METRC — why does this change METRC?
Illustrative: California uses metrc as a defined term and Pennsylvania does not. Importing the first statute into the second file is how packets bounce.
Nearby words people confuse with METRC — what belongs on METRC?
If someone says metrc and means a different glossary entry, stop and pick the right slug. The glossary index exists so METRC stays precise.
METRC still lives under two federal clocks. Medical activity generally left 280E after the April 2026 order. Adult-use activity did not. SBA SOP 50 10 8 still bars plant-touching 7(a) and 504 loans. SAFE Banking Act of 2026, S.4942 is a bill, not a close condition. Banks that stay in the category still cite FinCEN FIN-2014-G001.
Cited sources that govern METRC: IRC §280E still disallows ordinary deductions on Schedule I trafficking, which is why adult-use books stay in 280E. FinCEN FIN-2014-G001 remains the SAR frame banks actually use. SBA SOP 50 10 8 keeps plant-touching targets out of 7(a) and 504, including medical. SAFE Banking Act of 2026, S.4942 and H.R.9471 were introduced in 2026 and are not law.
Related pages for METRC — what belongs on METRC?
Read METRC next if that file is open on METRC. glossary index is the companion page when METRC needs that angle. Keep federal law in the working set for METRC. Read 280E next if that file is open on METRC. deal structure is the companion page when METRC needs that angle. Keep sell in the working set for METRC. Read buy next if that file is open on METRC. 280E is the companion page when METRC needs that angle.
Which public sources belong on this file?
Keep U.S. Treasury, DEA drug scheduling, DEA diversion schedules, FDA cannabis / CBD page in the working set. A forum post is not a substitute.
Frequently asked questions
What does METRC mean in a cannabis sale?
A common seed-to-sale system. Exports are the revenue truth, not a vanity P&L.
Is this legal advice?
No. Confirm the term against the statute and counsel.
Does the definition travel across states?
No. METRC in one statute is not automatically METRC in another.
Where does it show up in a deal?
Applications, LOIs, CIMs, and often the approval contingency.
Sources
- Viridian Capital public commentary — Tier 1 U.S. MSO EV/EBITDA ~4.16x (2025 consensus)
- Federal Register 2026-08176 (28 April 2026) — medical / FDA-approved marijuana to Schedule III — https://www.federalregister.gov/d/2026-08176
- FinCEN FIN-2014-G001 — BSA expectations for marijuana-related businesses — https://www.fincen.gov/resources/statutes-regulations/guidance/bsa-expectations-regarding-marijuana-related-businesses
- SBA SOP 50 10 8 (effective 1 June 2025) — marijuana ineligibility — https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs
- Congress.gov S.4942 — SAFE Banking Act of 2026 (introduced, not enacted) — https://www.congress.gov/bill/119th-congress/senate-bill/4942
- U.S. Treasury — https://home.treasury.gov/
- DEA drug scheduling — https://www.dea.gov/drug-information/drug-scheduling
- DEA diversion schedules — https://www.deadiversion.usdoj.gov/schedules/
- Congress.gov H.R.9471 — companion SAFE Banking bill — https://www.congress.gov/bill/119th-congress/house-bill/9471
- CRS IF13136 / IN12620 — hemp definition change effective 12 November 2026 (P.L. 119-37) — https://www.congress.gov/crs-product/IN12620
- IRC §280E — https://www.law.cornell.edu/uscode/text/26/280E