At McConnell's Request, National Credit Union Administration Issues Guidance to Assist Legal Hemp Industry

Statement

U.S. Senate Majority Leader Mitch McConnell (R-KY) announced today that at his request, the National Credit Union Administration (NCUA) issued guidance about changes in federal law related to hemp for federally insured credit unions interested in providing financial services to the legal hemp industry.

Many hemp farmers and producers in Kentucky faced challenges accessing capital and other important financial products as they explore the crop's economic opportunities, despite passage of Senator McConnell's hemp-legalization initiative in the 2018 Farm Bill. Hearing these concerns from his constituents, Senator McConnell contacted NCUA Chairman Rodney Hood urging the federal agency to provide clarification to help address this barrier to Kentucky's hemp industry.

In responding to Senator McConnell's request, Chairman Hood informed him the NCUA will offer more clarity and release interim guidance to federally insured credit unions and said, "The interim guidance makes it clear that credit unions may provide the customary range of financial services for business accounts, including loans, to these lawfully operating businesses…" Chairman Hood added, "Lawful hemp businesses provide exciting new opportunities for rural communities…my expectation is that credit unions will thoughtfully consider whether they are able to safely and properly serve lawfully operating hemp-related businesses within their fields of membership." The interim guidance will be updated once forthcoming regulations and guidelines are finalized by the United States Department of Agriculture.

"I'm delighted to hear the NCUA has answered my call on behalf of Kentuckians to ensure the legal hemp industry can access much-needed financial services," said Senator McConnell. "Although President Trump signed into law my initiative last year to remove hemp from the federal list of controlled substances, many of my constituents have told me about their difficulty receiving loans and other services that are necessary to successfully run a hemp business. Through this guidance by the NCUA, I look forward to more hemp farmers, processors and manufacturers starting or growing their operations with the help of Kentucky's credit unions. As Senate Majority Leader, I'll continue advocating for Kentucky's priorities throughout the federal government, and I'm proud of today's positive news."

"Kentucky's credit unions have a strong partner in Majority Leader McConnell, and we're grateful he listened to our concerns and helped deliver the guidance we need," said Debbie Painter, president of the Kentucky Credit Union League. "Our member credit unions proudly support Kentucky's agriculture sector, and the NCUA's regulatory guidance can allow us to take part in the extraordinary growth of hemp in the Commonwealth. As the federal government continues to finalize its regulations and guidelines, we are proud to have Senator McConnell on our side every step of the way."

Kentucky has been at the forefront of hemp production ever since the authorization of industrial hemp pilot programs established by Senator McConnell's provision in the 2014 Farm Bill. Agriculture leaders from around the country are looking to the Bluegrass State's prospering hemp industry as it grows in 101 of 120 counties and totals near $100 million worth of Kentucky hemp-related goods this year alone.

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