The National Credit Union Administration (NCUA) will allow hemp businesses to receive banking services from credit unions. This change in guidelines from the NCUA signifies the acknowledgment of the crop’s potential and the role credit unions can play in the growing industry.
“The continued growth of the hemp industry has opened the eyes of many federal organizations and it is exciting to see the National Credit Union Administration recognize the potential of this crop,” said Hemp, Inc. CEO Bruce Perlowin. “This update has the ability to change the industry, change lives and help businesses in this industry truly flourish. Since the Farm Bill 2018 passed, the industry has needed capital and financial services from reputable organizations and these updated regulations give the industry just that.”
Historically, many credit unions have provided services to agricultural businesses. The administration hopes the updated regulations will encourage credit unions to incorporate legally operating hemp businesses. Services offered can include accounts and loans for hemp businesses within the company’s field of membership.
The interim guidance from federally insured credit unions will provide hemp businesses with the customary financial services credit unions provide. The NCUA noted that regulations will be updated after the United States Department of Agriculture releases its rules for the hemp industry. The rules are expected to be announced prior to the 2020 planting season.
The hemp industry is expected to jump from $1.1 billion in revenue in the year 2018 to an estimated $2.6 billion by the year 2022, according to New Frontier Data.