Metayer Bonding Associates Provides Complete Confidence Managing All of Your Surety Bond Needs
Many states are now legalizing the use of marijuana for medicinal and recreational purposes with certain regulations. These regulations are meant to govern how different companies carry out business in the marijuana industry by setting rules around manufacturing and dispensing of marijuana and ensuring that proper payments are made with respect to applicable taxes and fees.
Here’s a list of states that have marijuana bond requirements and we can expect more states to soon follow suit:
The marijuana surety bond is essentially a tool that a state or municipality can employ to make sure that all the companies that are licensed to cultivate and supply marijuana carry out their actions in compliance with state-specific regulations.
Where necessary, these business owners need to obtain a bond that’s in compliance with the state regulations so they can be held financially responsible if they violate these regulations. This is done in order to provide an incentive for these companies to engage in legal and transparent behavior while conducting business.
For small bond amounts, owners of marijuana-related business can be written based exclusively on review of personal credit. Large bond amounts, on the other hand, require a review of the principal’s overall financial condition and business plan.
These fairly simple underwriting guidelines allow for quick approval terms from the bond company, most times same day. It’s extremely crucial for businesses who are either manufacturing or supplying marijuana to have a reliable surety bonding agent that can ensure that they’ve addressed all of their bonding requirements.
Bond Rates vary from 1%-3% depending upon financial and credit qualification.
Now that states are becoming more comfortable granting licenses to these businesses, these bonds are necessary because they build confidence across key players in the marijuana industry. This is an important step for business owners so they can show the regulators that they’re willing to take responsibility in case of non-compliance.
Michael F. Metayer, President & CEO
Listed below are examples of the bond companies we work with.