A new rule published on Monday last week by a federal agency imposes additional restrictions on companies that provide services to marijuana businesses, establishing that participants in a particular government loan guarantee program are prohibited from receiving income from cannabis operations.
The rule from the Rural Utilities Service, part of the U.S. Department of Agriculture (USDA), makes a number of changes to definitions and other provisions relating to a guaranteed loan program known as OneRD. Regarding cannabis, it bars lenders from working with an entity "if it derives income from illegal drugs, drug paraphernalia, or any other illegal product or activity as defined under Federal statute."
"A borrower that intends to lease space or enter into a power purchase agreement with a marijuana dispensary is not eligible," the rule published in the Federal Register says, "given our borrower would be receiving income from the marijuana operation which is a violation of Federal laws as marijuana is a controlled substance under Federal law and subject to Federal prosecution under the Controlled Substances Act (21 U.S.C. 812)."
Officials will accept public comment on the proposal through October 30. While the USDA rule is another reminder of the complications around the state–federal conflict on marijuana laws, the agency has been working to bolster the hemp industry since the legalization of that crop through the 2018 Farm Bill, including by appointing a number of industry stakeholders to a federal trade advisory committee that's meant to support efforts to promote U.S.-grown cannabis around the world.
Read more at Marijuana Moment.