--- source: https://cannabissuretybonds.com/states/arkansas/ site: Cannabis Surety Bonds, a Surety One, Inc. platform author: C. Constantin Poindexter, MA, JD, CPCU, AFSB, ASLI, ARe, AINS, AIS, CPLP, CICS last_reviewed: 2026-09-21 --- # Arkansas cannabis and marijuana surety bonds Arkansas dispensaries post a $100,000 performance bond and cultivation facilities post $500,000. A surety bond can also stand in for part of the proof of assets showing. - **Penal sum:** $100,000 to $500,000 - **Regulator:** Arkansas Medical Marijuana Commission - **Underwriting:** Application plus financial statements ## What Arkansas requires of cannabis and marijuana businesses Arkansas voters adopted the Medical Marijuana Amendment of 2016 (Amendment 98). The Medical Marijuana Commission awards dispensary and cultivation facility licenses, and Alcoholic Beverage Control enforces day to day operations. The Commission's rules build financial assurance into both the application and the license. A licensed dispensary must post a performance bond of $100,000. A cultivation facility must post $500,000. At the application stage the rules also allow a surety bond in place of part of the required proof of assets, which is why Arkansas is often described as a bond in lieu state: a $100,000 bond can satisfy a showing that would otherwise require $200,000 in documented assets for a dispensary. **Arkansas cannabis, marijuana and hemp bonds written by Surety One** | Bond | Penal sum | Who files it | Obligee | Authority | | Arkansas Medical Marijuana Dispensary Bond | $100,000 | Licensed dispensaries | Arkansas Medical Marijuana Commission | Ark. Const. amend. 98; MMC licensing rules | | Arkansas Medical Marijuana Cultivation Facility Bond | $500,000 | Licensed cultivation facilities | Arkansas Medical Marijuana Commission | Ark. Const. amend. 98; MMC licensing rules | ## What the bond guarantees The Arkansas bond is a term bond renewable each year by continuation certificate. It guarantees the Commission's costs of retaining a replacement operator after a revocation, the cost of closing and decommissioning the site including destruction of remaining marijuana, unpaid ABC penalties, taxes, penalties and interest on any Department of Finance and Administration tax account, and damages from failure to comply with Arkansas licensing law. Like every surety bond, this is a three party agreement and it is not insurance for the operator. If the surety pays a valid claim to the obligee, the principal must reimburse the surety under the general indemnity agreement signed when the bond is issued. [Read how the different cannabis bond obligations work.](https://cannabissuretybonds.com/bond-types/) ## How we underwrite Arkansas cannabis and marijuana bonds This obligation is larger than, or worded more heavily than, a simple compliance bond, so it is underwritten on financial disclosure: the application, a current personal financial statement from each owner holding ten percent or more, current business financial statements (CPA prepared for the largest bonds) and a copy of your complete state or local license application. A cannabis bond is in substance an unsecured credit instrument. The surety extends its credit to you in front of the regulator, so financial strength, operating experience and the exact wording of the bond form drive both the decision and the rate. Where the numbers are thin, partial collateral can close the gap. No applicant is automatically declined. [More on cost, credit and collateral.](https://cannabissuretybonds.com/cost-and-underwriting/) ## The parties to a Arkansas bond On a Arkansas bond the principal is your licensed business, named exactly as it appears on the license or application. The obligee is Arkansas Medical Marijuana Commission, and on the other bonds listed above the agency, county or city shown in the table. The surety is an insurance company admitted in Arkansas, placed by Surety One, Inc. as producer and underwriting manager. Who files in Arkansas: Licensed dispensaries ($100,000); Licensed cultivation facilities ($500,000). ## Claims, cancellation and renewal in Arkansas If Arkansas Medical Marijuana Commission believes the bonded obligation has been breached, it makes a written claim on the surety. The surety opens a file, asks for documentation and notifies you, and you have the opportunity to respond and to cure. A valid, unresolved claim is paid up to the penal sum, and the surety then recovers that payment and its expenses from the business and the individual indemnitors. Because the Arkansas obligation is large or carries performance, decommissioning or supply language, a claim can reach the full penal sum, which is why the indemnity agreement deserves the same attention as a personal guarantee on a loan. Most forms let the surety cancel on written notice to the obligee, commonly 30 to 90 days. If a replacement is not on file before the effective date, the regulator can suspend the medical marijuana license. We send renewal notices 45 days ahead, and renewing at least 30 days early removes the risk of a gap. ## Getting a Arkansas bond issued, step by step - **Confirm the form and amount.** Ask Arkansas Medical Marijuana Commission for the current bond form and penal sum, or send us the license type and we will confirm them. - **Apply.** Complete the [online application](https://cannabissuretybonds.com/apply/?state=arkansas). It collects the business details and the name, home address and Social Security number of each owner for a soft inquiry credit report. - **Send financial statements.** Personal financial statements from owners of ten percent or more, current business financials and your license application let us quote in about three to five business days. - **Bind and file.** Pay the premium and sign the indemnity agreement. We deliver the executed bond to you and, where it accepts electronic filing, to the obligee. Wet signature originals go out overnight. ## Keeping a Arkansas bond in good standing - File and pay every medical marijuana tax and fee on time. Delinquent taxes are the most common trigger for claims. - Keep seed to sale records reconciled to physical inventory, and document every destruction event with photographs, witnesses and waste manifests. - Tell us before you change the business name, ownership, location or license type, so the bond can be amended by rider before the regulator notices a mismatch. - Protect the personal credit of every indemnitor and keep quarterly financial statements. Both are reviewed at renewal. Terms such as penal sum, obligee and indemnitor are defined in the [glossary](https://cannabissuretybonds.com/glossary/). Changes to Arkansas and other state requirements are logged with dates in [regulatory updates](https://cannabissuretybonds.com/updates/), and an underwriter is available through the [contact page](https://cannabissuretybonds.com/contact/). ## What to send us - [Cannabis license bond application](https://cannabissuretybonds.com/downloads/cannabis-license-bond-application.pdf) - [Personal financial statement](https://suretyone.com/pdf/surety-personal-financial-statement.pdf) from each owner of ten percent or more - Current business financial statements - A copy of your complete license application Send documents to [Cannabis@SuretyOne.com](mailto:Cannabis@SuretyOne.com) or [apply online](https://cannabissuretybonds.com/apply/). Confirm the current form and amount with the [Arkansas Medical Marijuana Commission](https://www.dfa.arkansas.gov/) before you file. A note on vocabulary: cannabis and marijuana are the same plant and, for bonding purposes, the same business. Arkansas law uses the term "medical marijuana". Operators look for this bond as a Arkansas marijuana bond, a Arkansas marijuana license bond, a Arkansas cannabis bond and a Arkansas cannabis surety bond. They are one instrument, and this site uses the words interchangeably. See [marijuana surety bonds](https://cannabissuretybonds.com/marijuana-surety-bonds/). ## Primary sources Official texts behind this page. We link to citation based addresses on legislature, code and agency sites because those are the least likely to move. - [Arkansas Department of Finance and Administration, Medical Marijuana Commission](https://www.dfa.arkansas.gov/) ## Arkansas marijuana and cannabis bond questions **Q: Can a bond replace the proof of assets requirement in Arkansas?** In part, yes. The Commission's rules let an applicant substitute a surety bond for a portion of the asset showing. That frees working capital that would otherwise sit idle to satisfy the application. **Q: Does a dispensary that also cultivates need two bonds?** A dispensary's limited grow activity is covered by its dispensary license. An operator that separately holds a cultivation facility license posts the $500,000 cultivation bond for that license. **Q: Is a Arkansas marijuana bond the same as a Arkansas cannabis bond?** Yes. Marijuana bond, cannabis bond, marijuana license bond and cannabis surety bond are different names for the same instrument. Arkansas law uses the term medical marijuana, operators search under all of these names, and the bond form and amount are the same whichever word you use. **Q: How much does a Arkansas cannabis or marijuana surety bond cost?** You pay a premium, not the penal sum. The premium is a small fraction of the bond amount and depends on the size and wording of the obligation, your credit and your financial strength. Small compliance bonds carry low fixed annual premiums. Larger Arkansas bonds are rated individually. Quotes are free. **Q: Can I get a Arkansas medical marijuana bond with bad credit?** Yes in most cases. Surety One does not automatically decline any applicant. Files with damaged or limited credit go to our non-standard program, which carries a higher rate and sometimes partial collateral. **Written and reviewed by [C. Constantin Poindexter](https://www.linkedin.com/in/constantinpoindexter/), MA, JD, CPCU, AFSB, ASLI, ARe, AINS, AIS, CPLP, CICS.** Founder of Surety One, Inc., Cannabis Insurance Coverage Specialist, attorney and surety underwriter for more than thirty years. Author of [The Contractor's Guide to Surety Bonds](https://constantinpoindexterauthor.com/). [View his cannabis insurance credentials.](https://cannabissuretybonds.com/about/) Last reviewed September 21, 2026. ## Need your Arkansas cannabis or marijuana bond? Application review and quoting are free, and there is no obligation to buy. Bonds of $25,000 or less are usually issued the same business day. [Apply for a bond](https://cannabissuretybonds.com/apply/)[Talk to an underwriter: (919) 859-5294](tel:+19198595294)[Toll free (800) 373-2804](tel:+18003732804)