National Credit Union Administration OKs Hemp Businesses 

[dropcap class=”kp-dropcap”]C[/dropcap]redit Unions will soon be able to cater to hemp businesses without carrying the risk of losing status as federally-insured entities. According to a press release on Aug. 19, the National Credit Union Administration (NCUA) released interim guidance, clarifying that federally insured credit unions can provide services to legally operating hemp businesses.

The guidance is a response to Senate Majority Leader Mitch McConnell, an unlikely hemp ally, who recently requested clarification on the matter. The guidance will be revised by the United States Department of Agriculture. Credit unions will be able to provide the conventional financial services for business accounts including loans.

“Lawful hemp businesses provide exciting new opportunities for rural communities,” NCUA Chairman Rodney E. Hood stated. “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.”

Chairman Hood stated earlier this month that the NCUA would not sanction credit unions that are caught serving cannabis businesses in states where it has been legalized. The NCUA was created by Congress to regulate and supervise federal credit unions. It also manages the National Credit Union Share Insurance Fund.

Another organization, the Credit Union National Association (CUNA) praised the development.  While the organization does not take an official stance on the matter, it stated, “CUNA has long called on Congress to provide protections for credit unions that serve such businesses in states where it is legal, citing the benefits to public safety such services afford communities.” The CUNA also supports the SAFE Banking Act which would allow credit unions to cater to cannabis businesses as well.

Having the blessing from the NCUA is a long-awaited victory. This critical step could amount to major changes for hemp-derived CBD companies across the nation.