Cannabis Surety Bonds, Bonding for the Growing Marijuana Sector

These surety bonds fall in to the commercial class of business. With the exception of the few bonds that contain a decommissioning obligation or guarantees of a specific level of annual cannabis production they are simple, transactional bonds. The largest market for marijuana bonds is California where the the instrument is license compliance guarantee. Cannabis bonds that carry a penalty of $25,000 or less require only our completed application in order to underwrite and quote. Larger surety bond requests and those bond obligations that contain language or provisions that are not simple compliance obligations require review of personal and business financial statements. Cannabis business surety bonds are essentially unsecured credit instruments therefore personal credit is a factor in certain underwriting and rating decisions. We offer a non-standard program to applicants that may have damaged credit or may not have had the opportunity to develop a consumer credit history. No applicant is declined for coverage as we are committed to supporting legitimate, safe cannabis product cultivators, processors, marijuana testing lab and dispensaries.

Hemp Cultivation & Processor Surety Bonds, a New Weed Entrepreneur Opportunity

In December, 2018 hemp production for all uses was signed in to law by the President, opening a new opportunity to the agricultural community. The Office of General Counsel issued a memorandum defining the end of the hemp prohibition and establishing some basic guidelines for hemp operators. A product of hemp processing that is growing in popularity is cannabidiol ("CBD"). The Agricultural Improvement Act removed extracts of industrial hemp from Schedule I of the Controlled Substances Act, stating, "Upon consideration of the eight factors determinative of control of a substance under section 201 (c) of the CSA, FDA concludes that CBD and its salts … could be removed from under the CSA… We reach this conclusion because we find that CBD does not meet the criteria for placement in and of Schedules II, III, IV, or V under the CSA.” Producers, processors and commodity broker/dealers involved in hemp and CBD operations must post hemp permit surety bonds in several jurisdictions such as the Georgia hemp processor bond and Colorado commodity handler bond. As more states come "online" with permitting regulations, we'll update them here.

CICS Certification

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