The cannabis industry is a growing industry in the US with many states legalizing the use and growing of medical and recreational marijuana. Yet, the industry remains one of the most under-served by the banking industry. Fortunately, some fintechs have stepped in to offer a variety of CBD friendly banking solutions in the US such as cannabis business checking accounts, cannabis business payment solutions and cannabis business loans.
| State | 420 CBD friendly banks |
|---|---|
| Florida | Abaca, Paybotic, Greencheck Verified, Dama Financial, StandardC |
| Nevada | Greencheck Verified, Dama Financial, Abaca, StandardC |
| Colorado | Abaca, Greencheck Verified, Dama Financial, StandardC, Safe Harbor Financial, Partner Colorado Credit Union |
| Oregon | Left Coast Financial Solutions, Bespoke Financial |
| Missouri | Abaca, First Option Bank, Lead Bank |
| Oklahoma | Abaca, Blue Sky Bank, Regent Bank, Oklahoma State Bank (OSB) |
Contents
Banking in the Cannabis Industry
Although many states are legalizing the use and growing of medical marijuana, many banks and credit unions have kept their hands off the marijuana industry. Only less than two percent of credit unions and banks are serving marijuana-related businesses. It is because they consider it to have many risks and regulatory requirements are extremely complex. The number, however, is expected to keep increasing as legal cannabis continues to be embraced.
Marijuana Banking Regulations
Banks find themselves in a difficult situation due to the conflict between state and federal law, with local communities encouraging them to bank cannabis businesses and federal law prohibiting it. — A letter to US lawmakers from The American Bankers Association.
In 2021, the House of Representatives approved a cannabis banking bill. The legislation seeks to allow banks to provide services to cannabis companies in states where it is legal. According to the bill, proceeds from legitimate cannabis businesses would not be considered illegal. It will allow cannabis businesses to have deposits account, accept credit cards, write checks, acquire loans, pay salaries, and pay taxes. The bill has been sent to the Senate.
Any bank that is willing to serve the marijuana industry must comply with strict rules governing the marijuana industry. Moreover, cannabis is illegal under federal law, which makes is harder for banks under the Federal Reserve System to serve the cannabis industry. They risk losing their license. However, it is worthy noting that there’s no law that explicitly forbids banks or financial institutions from conducting business with cannabis businesses.
Banks and fintechs that serve the industry, mostly community banks and credit unions, must comply with the 2014 FinCEN guidance and other related guidelines. They also need to develop a thorough regulatory compliance program. For example, banks must ensure that those they serve are regulated, do not distribute cannabis to children and the revenues from marijuana are not used for criminal activities. As such, banks must do due diligence to know their customers before they can start serving them.
There are many marijuana-related businesses that have had their banking services terminated or are finding it hard to get accepted by banks because of inadequate reporting and compliance weaknesses.
Do you need loans for your cannabis business? Read our article on Cannabis Business Loans
Banking Options for Marijuana Businesses
Since there are only a few CBD friendly banks offering services to marijuana-related businesses, marijuana companies need to find alternative banking options. Any company that is seeking banking services should consider fintechs, small state-run banks and credit unions. This is because it is challenging to find big American banks that accepts cannabis-related business due to strict regulations governing the industry. As stated earlier, most banks will not risk federal punishments and cumbersome paperwork they must submit to comply with FinCEN’s guidelines.
However, in some states like Colorado, Washington, Nevada and Oregon, you can easily find a bank that accepts marijuana clients. There are other states you can also easily get banking services for the marijuana industry like Florida, Illinois, New York, Minnesota and Massachusetts. If you are in states that have fewer marijuana banking options, you may just have to try small state-run banks or any credit unions. Most of the fintech offering banking services do this in collaboration with small banks and credit unions.
According to the Cannabis Banking Authority, as of January 2021, more than 180 financial institutions across the U.S. are officially and openly friendly to cannabis and related industries.
Some cannabis banking solutions you can find in the states where cannabis is legal include the following.
Abaca
Abaca offers an online platform where you can open a bank account with one of its partner credit unions or banks. The fintech is currently operating in Illinois, Missouri, Oklahoma, North Dakota, and Arkansas for cannabis businesses that are plant-touching. As of ancillary hemp or cannabis entities, your application can be accepted from any state within the United States.
Cannabis Banking Services Offered
- FDIC-insured cannabis business bank accounts
- Payments solutions including accepting debit cards and credit cards
- Onsite cash management and cash transportation
- Cannabis business loan (cannabis equipment loan, cannabis real estate loan
Green Check Verified
Green Check Verified is the leading provider of cannabis banking solutions and expert advisory services for financial institutions in 36 states and two U.S. territories. You can manage all of your banking activities in one place via the Green Check Verified platform.
Cannabis Banking Services Offered
The fintech works in partnership with banks and credit unions to offer the following services:
- Checking accounts
- Debit cards
- Online banking
- Lending
- Wire and ACH
- Cash handling
Dama Financial
Dama offers an FDIC-insured bank account for your cannabis business within one week of fulfilling application requirements. The fintech offers a number of products to cannabis businesses.
Cannabis Banking Offered
- Banking
- Merchant services
- Cash management
- Credit
- Payroll products
Dama serves retail and delivery service providers, manufacturers, distributors, cultivators, brands and cannabis ancillary businesses.
StandardC
StandardC is a fintech that enables your cannabis business to obtain bank accounts and services with banks, credit unions, payroll providers, insurers, and other financial services within the StandardC Network. This is done through a single application process that takes a few days depending type of service you are applying for. Once your application is approved, you will have access to StandardC Network partners
Cannabis Banking Services Offered
- Business checking and savings accounts
- Remote deposit capture
- Domestic and international money transfers
- ACH payments
- Treasury management
- mobile banking apps
Safe Harbor Financial
Safe Harbor Financial has been offering business checking and savings accounts to cannabis, hemp, CBD and ancillary businesses in the US since 2015.
Cannabis Banking Services Offered
- Checking and savings account
- Cash management accounts
- Online mobile banking
- Mobile check deposits
- Cannabis investment accounts
- Cannabis commercial lending
- Cannabis mortgages (mortgage for cannabis business owners)
Your funds are safe with the fintech because clients’ accounts are held at Colorado Credit Union and are insured through the NCUA Share Insurance Fund.
North Bay Credit Union (NBCU)
North Bay Credit Union has been offering banking services to the cannabis industry since 2017. Normally, it serves businesses located in the areas north of San Francisco. However, it limits the size of deposits made by such businesses. All accounts with NBCU are required to have a balance on the last day of each month of no more than $350,000.
Cannabis Banking Services Offered
- Insured business checking accounts
- Online access and mobile banking
- Electronic bill payments
- ACH and wire transfers
- Debit cards
- Merchant processing services
- Armored cash pick up services
- Payroll products
Oklahoma State Bank
Oklahoma State Bank provides you with the necessary financial tools that your Cannabis business requires. Through the bank, you can pay your employees and vendors and deliver payroll directly to the bank account.
- Cannabis business checking
- Bill pay
- ACH payroll origination
- Remote deposit capture
- Cashless point-of-sale transactions
- Oline banking with mobile app
- Mastercard debit card
Sound Credit Union
Sound Credit Union was founded in 1985 and has its headquarters in Tacoma, WA. It offers cannabis banking services in Washington state. You only need to fill an online application form to get the Cannabis Account.
Cannabis Banking Services Offered
- ACH Origination
- Wires (domestic only)
- Remote Deposit Capture (RDC)
- Armored transportation
- QuickBooks integr
- Tax payments
Paybotic
Paybotic is a payment solution for the cannabis industry including medical marijuana doctors. It partners with banks that serve the cannabis industry by adhering to state-to-state banking laws.
Cannabis Banking Services Offered
- Card and mobile payment services
- Merchant bank accounts
- 280e tax federal filing services
- Cash Advance for cannabis businesses
- eCheck/ACH
O Bee Credit Union
O Bee Credit Union was founded in 1955 in the Olympia Brewery. It offers banking solutions to underserved industries and especially the cannabis industry. To open an account, you need to pay a $500 application fee. You will also need to provide the following documents; Tax ID number, Business license and duly filled application form. You will also need to present the release of records from the Liquor and Cannabis board.
Cannabis Banking Services Offereed
- Direct deposit
- Check deposit through mobile apps
- Savings account for employees
- Loans to employees
US Eagle
US Eagle offers banking solutions to cannabis-related businesses in New Mexico. It ensures safe and secure payments mean and that all transactions adhere to federal and state banking regulations.
Cannabis Banking Services Offered
- Cannabis business checking accounts
- Cannabis business avings accounts
- Debit cards
- Online and mobile banking
- Domestic wires
- Cash handling services
- Online bill payment solutions
- ACH/EFT electronic transfers
Left Coast Financial Solution
Left Coast Financial Solutions is one of hemp friendly banks in Oregon.
Hemp Friendly Banking in Oregon: Services Offered
- Cash-in-transit services
- Digital invoices, automatic and recurring payments, and electronic checking
- Compliance and transaction management solutions
- Deposits services
Conclusion
Finding a banking solution for your cannabis business in the US has always been challenging. The process is getting easier with the rise of fintechs that offer business accounts, payment processing solutions, lending, wire transfers, etc., to CBD related businesses. Take your time to do a thorough research before you choose a weed banking provider. Make sure you choose a provider who offers competitive fees, easy on-boarding process, and insurance for your funds.
- CBD friendly banks in Florida (420 friendly banks in Florida):
- Abaca, Paybotic, Greencheck Verified, Dama Financial, StandardC
- Abaca, Paybotic, Greencheck Verified, Dama Financial, StandardC
- CBD friendly banks in Nevada (420 friendly banks in Nevada) :
- Greencheck Verified, Dama Financial, Abaca, StandardC
- Greencheck Verified, Dama Financial, Abaca, StandardC
- CBD friendly banks in Colorado (420 friendly banks in Colorado):
- Abaca, Greencheck Verified, Dama Financial, StandardC, Safe Harbor Financial, Partner Colorado Credit Union
- Abaca, Greencheck Verified, Dama Financial, StandardC, Safe Harbor Financial, Partner Colorado Credit Union
- Hemp friendly banks in Oregon:
- Left Coast Financial Solutions, Bespoke Financial
- Left Coast Financial Solutions, Bespoke Financial
- CBD friendly Banks in Missouri: (420 friendly banks in Missouri):
- Abaca, First Option Bank, Lead Bank
- Abaca, First Option Bank, Lead Bank
- Cannabis banking in Oklahoma: (420 friendly banks in Oklahoma):
- Abaca, Blue Sky Bank, Regent Bank, Oklahoma State Bank (OSB)
