This bill establishes new regulations for lenders providing loans to cannabis businesses in Minnesota, codified under Minnesota Statutes, chapter 342. It introduces definitions for key terms such as "borrower," "lender," and "loan," clarifying that lenders do not include banks or credit unions regulated by federal or state authorities. The bill mandates that lenders must comply with fair lending requirements, which include providing borrowers with a detailed list of disclosures at least five days before executing a loan contract. These disclosures must cover essential loan details such as interest rates, finance charges, payment schedules, and total payment amounts.

Additionally, the bill prohibits false advertising or solicitation practices by lenders and outlines that any loan made in violation of these regulations will be considered void, relieving the borrower of any repayment obligations. The effective date for these provisions is set for August 1, 2025, applying to loans offered or made on or after that date. Overall, the bill aims to ensure transparency and fairness in lending practices within the cannabis industry.