The CBD Industry is growing at a rapid rate. The industry will soon be so large that it will be impossible for “first line” lenders to ignore. 

Read below in order to familiarize yourself with some of the basics and industry terminology:

 Future Industry Predictions

Although most CBD sales currently come from the internet or other direct sources, those numbers are expected to drop to less than 30% by 2020 as more traditional retail and pharmaceutical options become available. Bloomberg reported “The U.S. cannabis industry is expected to be worth $50 billion by 2026”. Currently there is not enough hemp available to guarantee consistent supplies for interested players like CVS, Walmart, General Mills, and Coca Cola to launch CBD: edibles, supplements and pharmaceuticals.

In the United States, the term “hemp” is used to describe a cannabis plant that produces no more than 0.3% THC, which is the molecule that causes the euphoric effects associated with medicinal and adult-use cannabis. The classification does not take into consideration any other cannabinoid. Therefore, if a plant produces 20% CBD and only 0.29% THC, it’s still legally considered hemp not marijuana.


Hemp Biomass is purchased directly from U.S. Industrial Hemp farmers or from brokers throughout the United States. Prior to purchasing a crop, the converter tests the potency (% CBD) of the crop yield to ensure the purchased product will have a high enough potency. On average, the converter tries to purchase Biomass with a 10% or higher aggregate CBD potency.


Crude CBD is the first stage of extracting concentrate CBD oil from the raw Biomass. Crude CBD oil can be pre-winterized, winterized and winterized/ decarboxylated.


CBD Distillation is the process of converting CBD Crude extract into a more refined product. Distillate is purified on the molecular level to yield a highly potent concentrate. The converter has the ability to produce full spectrum oil, broad spectrum oil, and cannabinoid specific distillate and CBD distillate.

Full Spectrum Distillate oil contains very small quantities of THC, but most of the yield is CBD.

Broad Spectrum Distillate contains all primary CBD cannabinoids including CBD, CBN, CBG and CBDA; however, broad spectrum CBD contains no THC. Cannabinoid specific CBD oil, as its name implies, contains only a specific cannabinoid (CBD, CBN, CBG or CBDA). Depending on the cannabinoid, these interim products have a value ranging from $6,500 to $85,000 a per liter.


CBD isolate is the final and most molecularly pure product of the refinement process. Isolate is processed to the point where any remaining minor cannabinoids, terpenes, flavonoids or remaining plant matter is removed, leaving a 99%  or higher pure CBD product.