NCUA releases guidance to CUs on serving hemp-related businesses

Yesterday, NCUA Chairman Rodney Hood sent a regulatory alert and guidance to federally insured credit unions about changes in federal law and regulation related to hemp businesses. The notice refers to credit unions that have lawfully operating hemp businesses (dealing with hemp and hemp-derived products, such as manufacturing, distribution, shipping, and retail) within their fields of membership.

"Credit unions may provide the customary range of financial services for business accounts, including loans, to lawfully operating hemp-related businesses within their fields of membership," the alert reads. "The information in this alert is intended to help credit unions better understand what they should consider in providing financial services to lawfully operating hemp businesses."

Hood encouraged credit unions to thoughtfully consider whether they are able to safely and properly serve lawfully operating hemp-related businesses within their fields of membership, and NCUA will issue additional guidance on this subject once the USDA’s forthcoming regulations and guidelines are finalized.

Suzanne Yashewski, regulatory compliance counsel for Cornerstone Credit Union League, said only a few states were included in the NCUA's study of hemp, which has allowed them to operate legally for the past few years. Arkansas, Oklahoma, and Texas were not states included in the study.

"We thank NCUA for providing a summary of legal status and guidance on the matter of providing financial services to hemp businesses," said Yashewski. "Due to the complexities and risks involved, credit unions in the Cornerstone region should not bank the hemp industry until after the government issues its new regulations, which we anticipate being released soon."

Yashewski noted that she will be providing upcoming training on this issue in Arkansas, Oklahoma, and Texas in the fall. During the training sessions, banking for hemp-related and marijuana-related businesses will be discussed, as well as the details of each state's laws and regulations. Watch for more information on this training from Cornerstone in the next few weeks.

Read the NCUA's alert providing financial services to hemp-related businesses.