The U.S. Department of Agriculture (USDA) is defending its decision to adopt a rule adding restrictions on companies that provide services to marijuana businesses, making it so participants in a particular government loan guarantee program are prohibited from receiving income from cannabis operations.
After posting the finalized rule in October 2024—amending a guaranteed loan program called OneRD through USDA’s Rural Utilities Service—the agency published a notice in the Federal Register last month responding to comments on the marijuana-related policy change.
Regarding cannabis, the rule 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 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).”
USDA said in the latest notice that all four people who comments on the rule “indicated disagreement with the Agency’s decision to prohibit
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