Hemp Banking Developments
Friends,
This month, the National Credit Union Administration (the “NCUA”) issued guidance to federally insured credit unions for banking hemp businesses. The guidance provides some parameters for credit unions banking hemp businesses.
The NCUA guidance requires any credit union providing services to hemp businesses to conduct due diligence on hemp businesses, and ensure that there is no money laundering, or other illegal or suspicious activity. The guidance also requires credit unions to confirm that hemp businesses are operating lawfully under state and federal law, including lawful products. This could interfere with banking services for some CBD businesses due to the FDA’s position, echoed by several states, that CBD is prohibited in foods and dietary supplements. Hemp businesses applying for banking with a credit union should be prepared to provide state licenses and ownership documentation, and other documentation requested by the credit union, to demonstrate this compliance.
Credit unions regulated by the NCUA may now lend money to lawfully-operating hemp businesses. Nothing in this guidance or the law requires any credit union to make a loan, but this guidance clarifies that such loans are permissible under federal law. All loans for hemp businesses must still meet underwriting standards and comply with applicable NCUA rules and regulations like any other business loan.
If you need help with compliance advice, with responding to documentation requests from a credit union, or if you have questions about the legality of your products, please contact the attorneys at McAllister Garfield to make an appointment.
You can find the NCUA guidance here: NCUA Serving Hemp Businesses
A significant portion of McAllister Garfield’s work involves providing services to the hemp/CBD industries, including 50-state surveys of hemp laws, regulatory opinion letters on the legality of hemp, import/export issues, label reviews, business startup, regulatory compliance and real estate work. If you would like to discuss banking or any other topic in hemp/CBD, please contact me at your convenience.
Sincerely,
McAllister Garfield Team
Related Article
Emerging Trends In Psychedelic Laws: Implications for Practitioners
As the psychedelic renaissance continues, legal landscapes globally are evolving rapidly. What was once a fringe area of medical research and therapy is now moving towards mainstream acceptance, driven by promising results in clinical trials and changing public perceptions. For practitioners, these shifts present both exciting opportunities and complex challenges. This blog post explores emerging […]
McAllister Law Office – Psychedelic Law Update – June 2024
1. With Sean McAllister as one of their lawyers, The Church of The Eagle and The Condor is recognized as the third religious organization authorized to use ayahuasca in the United States. In a career highlight, I was honored to one of five lawyers representing The Church of The Eagle and The Condor (“CEC”) in […]
Navigating New Realms: The Crucial Role Of Legal Guidance In Psychedelic Business Start-Ups
In recent years, the interest in psychedelics for therapeutic purposes has surged, offering a promising frontier in both medical science and entrepreneurship. However, the burgeoning field of psychedelic businesses also presents a unique set of legal challenges. For start-ups in this industry, navigating the complex regulatory environment is not just about compliance, but also about […]