UT cannabis processor bonds.
2% of the bond amount.

Utah licenses cannabis processing facilities through the Department of Agriculture and Food, and Utah Code 4-41a-201(2)(b)(iv)(B) requires the applicant to obtain and maintain a liquid cash account or a performance bond of at least $50,000 for each processing facility applied for — from a surety authorized to transact surety business in the state. Pricing is 2% of the bond amount, $100 minimum, and the bond issues the moment you pay. Any credit screen is a soft pull only — it never affects your score.

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Required for a Utah cannabis processing facility license under Utah Code 4-41a-201(2)(b)(iv)(B)

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At least $50,000 per processing facility — the same floor covers an independent cannabis testing laboratory

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2% of the bond amount, $100 minimum — exact price at the application, issued the moment you pay

2% rate$100 minimumInstantissuance at checkoutSoft pullnever a hard inquiry

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How it works

Three steps. One sitting.

No underwriting queue for the processor performance bond — enter your amount, pay, and file with the Department. Here is the whole thing:

NOW · ONLINE

Apply online

Business details, the bond amount your license requires, an effective date, and a term. Any credit screen is a soft pull that never shows as a hard inquiry.

INSTANTLY

Pay & e-sign

The premium is 2% of the bond amount, $100 minimum — priced at checkout, so the bond issues the moment you pay. Your executed bond and power of attorney generate on the spot.

SAME DAY

File with the Department

Your executed bond arrives by email, ready to submit with your processing facility application or renewal at the Utah Department of Agriculture and Food. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the processor bond actually guarantees

A cannabis processing facility takes cannabis grown by a licensed cultivator and turns it into the medicinal dosage forms Utah allows. It is a cannabis production establishment under the Utah Agricultural Code, Title 4, Chapter 41a, licensed by the Department of Agriculture and Food under Section 4-41a-201.

Subsection (2)(b)(iv)(B) requires a statement that the applicant will obtain and maintain a liquid cash account with a financial institution or a performance bond of at least $50,000 for each cannabis processing facility or independent cannabis testing laboratory the applicant applies for — issued by a surety authorized to transact surety business in Utah. UDAF's renewal packets ask every owner to show the bond or the cash account.

It is a three-party arrangement: you (the principal), the surety carrier, and the State of Utah (the obligee). The bond guarantees your compliance with Chapter 41a and the rules issued under it, and failure to maintain the license qualifications can lead to suspension, revocation, or forfeiture of the bond. It is not insurance for you — if the surety pays, you repay the surety.

Utah Code 4-41a-201(2)(b)(iv)(B)Section 4-41a-201 of the Utah Agricultural Code governs the cannabis production establishment license issued by the Department of Agriculture and Food. Subsection (2)(b)(iv)(B) requires the applicant to state that it will obtain and maintain a liquid cash account with a financial institution, or a performance bond that a surety authorized to transact surety business in the state issues, in an amount of at least $50,000 for each cannabis processing facility or independent cannabis testing laboratory for which the applicant applies. Confirm the amount on your application packet before you buy.

You need this bond if you're

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Applying for a Utah cannabis processing facility license with the Department of Agriculture and Food

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Running an independent cannabis testing laboratory — the same $50,000 floor applies

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Renewing a processing license and submitting the bond with your owner documents

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Swapping a liquid cash account for a bond to free up working capital

One application, issued instantly.

These are the actual issuing fields — business details, the bond amount your license requires, an effective date, and a term. That is the entire application.

Start the application →

FAQ

Common questions.

How much is the Utah cannabis processor bond?The premium is 2% of the bond amount, with a $100 minimum. The bond amount itself starts at the statutory $50,000 per processing facility, so enter that figure (or the amount your packet names) and your exact price appears at the application.

Does the same bond cover a testing laboratory?The statute uses one figure for both: at least $50,000 for each cannabis processing facility or independent cannabis testing laboratory the applicant applies for. Post the amount your application packet names.

Can I post cash instead?Yes — 4-41a-201(2)(b)(iv) lets you maintain a liquid cash account with a financial institution in place of the performance bond. Most operators bond it instead, because the premium is a fraction of the amount and the cash stays in the business.

How fast will I have the bond?This bond is priced at checkout, so it issues the moment you pay — your e-signed bond and power of attorney arrive by email, ready to file with your processing facility application.

Is there a credit check?If a credit screen runs on this bond, it is a soft pull only — never a hard inquiry, and it never affects your score. The 2% rate and $100 minimum stay the same either way.

Related bonds

Other Utah bonds.

Processor performance bond, issued today.

2% of the bond amount, $100 minimum, issued the moment you pay. Soft pull only, and free until issued.

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Your premiumfrom $100

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