SHF Holdings, Inc., doing business as Safe Harbor Financial (NASDAQ:SHFS) — a facilitator of financial services and credit solutions for the cannabis industry, has successfully exited a $3.1 million loan that was previously in default.

In addition to the full repayment of the principal, Safe Harbor received $202,175 in accrued interest, all of which will be reallocated into its lending and credit line capacity, Benzinga exclusively learned.

"Safe Harbor has established a strong lending program that meets the financial requirements of our clients while generating appropriate risk-adjusted loan interest income for the business," stated Dan Roda, executive vice president and chief operating officer of Safe Harbor Financial.

"The strength of our program is our underwriting criteria, which has resulted in only one non-performing loan over its history. That we recouped the full value of this loan, plus accrued interest and expenses, not only validates the balanced approach to our lending program but also significantly improves the overall quality of our loan portfolio and increases our lending capacity to service our clients' credit needs."

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The news comes about a month after the company confirmed the formal launch of its new small business line of credit program to long-standing clients. The program's launch includes the origination of three new lines of credit totaling $550,000 for Colorado businesses. The company didn't disclose which three operators were first to obtain credit.

The $3.1 million first-lien loan was originated in 2021 and secured by Class A industrial real estate in the Denver metropolitan area. The strength of the underlying fundamentals of the property helped facilitate a successful exit of the loan. This was the only loan in the portfolio in default as of March 31, 2024.

Price Action: Safe Harbor shares were up 0.1% in premarket trading on Tuesday after closing 8.17% lower on Monday at $0.50, according to Benzinga Pro.

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