Federally insured credit unions may provide certain financial services to legally operating hemp businesses under new guidance published today by the National Credit Union Administration (NCUA).
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions.
With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also educates the public on consumer protection and financial literacy issues.
The Farm Act of 2018 has created the need for additional financial regulatory guidance for legal hemp industrialists and will be revised and updated once the United States Department of Agriculture finalizes forthcoming guidelines regarding the cultivation and processing of hemp for industrial use and human consumption.
Credit unions will be able to provide the customary range of financial services for business accounts, including loans, to hemp businesses within their fields of membership.
“Lawful hemp businesses provide exciting new opportunities for rural communities,” NCUA Chairman Rodney E. Hood said. “I believe today’s interim guidance keeps with the mission of the nation’s cooperative credit system to serve people who have been overlooked and underserved. Many credit unions have a long and successful history of providing services to the agriculture sector. My expectation is that credit unions will thoughtfully consider whether they are able to safely and properly serve lawfully operating hemp-related businesses within their fields of membership.”
More information on The Farm Act of 2018 as well as the servicing of hemp related businesses will be made available throughout Q4.