License & Permit
Cannabis Business Bond
A bond a state cannabis regulator requires from licensed growers, processors, or dispensaries as a condition of the license.
- Required by
- State cannabis commissions (in Alabama, the Alabama Medical Cannabis Commission)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state cannabis agency that the licensee will meet the license terms, which can include building and opening on time, paying taxes and fees, and restoring land when operations end. If the licensee fails, the agency can claim on the bond. The licensee must repay the surety for any claim paid.
Who needs it
- Medical cannabis integrated facilities in Alabama
- Commercial growers in states such as Oklahoma
- Processors and dispensaries where the state requires a bond
What the underwriter looks at
- Company financial statements and capital
- Owners' personal credit
- Collateral, often required
- License type and size of operation
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
What does Alabama require?
An integrated facility licensee files a $2,000,000 performance bond with the Alabama Medical Cannabis Commission under Ala. Code 20-2A-67. The bond covers completing construction, starting and running operations lawfully, and paying fees.
Is this hard to get?
Cannabis bonds are a narrow market. Alabama's form requires a surety rated at least A, and sureties often ask for collateral and full financial statements.