Insights into New OLCC Rules for Lenders
As most of you should know, the OLCC adopted a significant change to the rules governing lenders to OLCC licensed marijuana businesses at the beginning of the year. Previously, lenders who loaned money at commercially reasonable rates did not need to be disclosed to the OLCC. The new rule now requires disclosure to the OLCC of lenders who loan "money real property, or personal property to an applicant or licensee for use in the business that constitutes a substantial portion of the business cost." OAR 845-1015(23)(a)(B).
So, what constitutes a "substantial portion" of the business costs? We have heard from reliable sources that the OLCC considers a loan of $50,000 or more to fall within this definition. For loans made in the ordinary course prior to the new rule, those lenders need to be disclosed during the next annual renewal of the OLCC license.