New SBA lending rules could curb loans to hemp businesses

(This is an abridged version of a story that appears at Marijuana Business Daily.)

The U.S. Small Business Administration updated its lending guidelines with new rules that could have a major impact on businesses servicing the cannabis industry – and not just those on the marijuana side.

The revised guidance, published in early April, prohibits banks from issuing SBA-backed loans to any company that has a direct business relationship with a cannabis or hemp firm.

For hemp-related businesses, any company that “grows, produces, processes, distributes or sells products purportedly made from hemp is ineligible unless the business can demonstrate that its business activities and products are legal under federal and state law. Examples of legal hemp products include paper, clothing and rope.”

The new rules could have big implications for firms with business operations that extend beyond cannabis. For example, landlords who lease space to marijuana-related firms would not qualify for an SBA loan.

Click here to read more about how the new guidelines will affect direct and indirect marijuana-related business.

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5 comments on “New SBA lending rules could curb loans to hemp businesses
  1. SolRevolt on

    This excerpt appears to be written by someone with no understanding of SBA lending program. Call us to get the facts

    Landlords cannot obtain SBA financing unless they are also the owners of the operating company.

    Reply
    • Adam Horowitz on

      I want to offer our hemp farmers lending options. They are typically in need of seeds and equipment. How do I contact you?

      Reply
      • Martin Miller on

        Hi there

        Was interested in doing some spring planting of hemp in Oregon . My current bank I use for my farm operating loan,does not finance hemp production at this time. Is there any banks or lending sources that help finance hemp production ? If you would let me know ,that would be great. Thanks

        Martin Miller

        Reply
  2. SCOTT PASTERE on

    I am with Martin Miller, I to am in Oregon and would like the information that he is seeking. Can you also help me out. I am a 100% disabled service connected veteran.

    Thank You

    Reply
  3. Sheri Gillum on

    Would also like information on getting help with SBA with starting a hemp farm. Need equipment, seed, greenhouse and a barn.

    Reply

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