DENVER–SHF Holdings, Inc., which does business as Safe Harbor Financial and which provides solutions to serve the regulated cannabis and hemp industries, said it has added an amendment to its Commercial Alliance Agreement with Partner Colorado Credit Union that “fundamentally improves” its economics and “positions it for accelerated, profitable growth.”
Safe Harbor Financial began its life as a CUSO of Partner Colorado CU before being spun off as a separate company.
According to Safe Harbor, the amended agreement extends the organizations’ relationship through December 2031 from the original 2029 expiration date with automatic two-year renewal provisions.
“The extension demonstrates PCCU’s confidence in Safe Harbor’s platform and management team,” the company said in a statement.
Terms of the Deal
According to Safe Harbor, the amended Commercial Alliance Agreement adds benefits that include:
- Revenue Enhancement of $9 million over term ($1.5 million annually): Safe Harbor will receive up to 65% of loan interest income (up from ~37%, a ~75% increase), generating an expected $9+ million over the agreement term with no incremental cash costs, the company said.
“In exchange, Safe Harbor will indemnify up to 65% of the potential net losses on defaulted loans, converting non-cash risk exposure into substantial cash revenue,” according to Safe Harbor. “To date, no loans issued by PCCU have defaulted, evidencing the effectiveness of Safe Harbor’s underwriting capabilities.”
- Immediate Cost Reduction: Safe Harbor said its asset hosting fee will decrease by approximately 23% or $250,000 annually and $1.5 million over the term of the agreement, based on our Q3 2025 reported numbers. The new terms replace a fixed fee structure with a graduated fee structure. The cost savings scales up to approximately $600,000 annually as PCCU’s deposit base grows, according to the company.
- Safe Harbor will receive approximately $400,000 as retroactive payment from PCCU: The amended agreement is retroactive to Oct. 1, 2025, the company said.
‘Fundamental Transformation’
“Safe Harbor’s amended agreement with PCCU is a fundamental transformation of our business model that removes growth barriers and positions us for profitable expansion,” Safe Harbor CEO Terry Mendez said in a statement. “PCCU’s decision to extend and enhance this partnership validates both the strength of our platform and the capability of our management team. The new economics significantly benefit Safe Harbor; we are converting non-cash risk exposure into substantial cash revenue and cost savings.”
‘Exceptional Partner’
Added Partner Colorado CU President and CEO Douglas Fagan in a statement, “Safe Harbor has proven itself as an exceptional partner with unmatched expertise in providing compliant cannabis banking services. Their proprietary technology platform, risk management capabilities, and deep understanding of this complex regulatory environment make them uniquely qualified to help financial institutions like ours serve this industry. We’re excited to deepen our partnership through 2031 and beyond, and we’re confident that this enhanced agreement will drive growth and success for both organizations and the clients we serve together.”
