USDA Releases Guidelines for Federal Hemp Business Loans

The USDA has released guidelines for hemp businesses to apply for and receive federal loans.

Full story after the jump.

The U.S. Department of Agriculture has released guidelines for hemp companies to apply for and receive federal loans, Marijuana Moment reports.

The guidelines, which were detailed in a memo issued last month, are part of the USDA‘s aim to align the federal hemp industry with other agricultural commodities — one piece of that effort is establishing the framework for hemp farmers to acquire federal loans.

“While it’s understood that this new commodity will likely produce some servicing challenges because of State and Federal regulations, it should be treated as closely as possible to any other agricultural commodity and serviced in the same manner.” — USDA memo excerpt

The memo lists the requirements that a hemp business must meet in order to qualify for a federal loan, which includes being licensed under a USDA-approved state or tribal hemp program and strict guidelines for reporting to the agency about any potential issues that arise with one’s hemp crop.

“Hemp will be considered like any other borrower produced commodity, if the hemp was produced under a license authorized by the 2014 or 2018 farm bills, and provided the crop is not abandoned or destroyed,” according to the memo.

USDA also clarified that federal loans cannot be used to pay for the disposal of hemp crops that test higher than the federal 0.3% THC cap.

The agency noted that, while access to a bank account is yet another requirement to receive a loan, not all banks are fully willing to cooperate with the hemp industry yet despite its federal legalization.

Exclusive offer from our sponsor:

Get daily news insights in your inbox. Subscribe

End


Latest Cannabis News

View all news Get email updates

Create a profile View all categories

From Our Partners

New to Cannabis? Start Here.

The Ganjapreneur beginner's guide to all things cannabis.


Ganjapreneur
Business Index

Find and connect with cannabis-friendly service providers:

Website & branding by the Ganjapreneur in-house agency:

Blue Dream - Uplifted cannabis industry branding & marketing.

Uplifted cannabis industry branding & marketing.