Top  CBD Friendly Banks

Top 10 CBD Friendly Banks

March 2, 2022


The CBD market is pretty new, and though the 2018 Farm bill legalized hemp and its extracts, everything about CBD is yet to be clear as day. Hence, many banks and other financial institutions are skeptical about partnering with CBD businesses.

However, some banks recognize that the CBD industry has come to stay and help CBD businesses run daily. CBD friendly banks fund and support CBD-based businesses, mainly by providing them with loans and non-restricting monthly contracts.

CBD friendly banks are great for CBD businesses – that’s beyond question. However, one crucial question to address is which of the banks is best for CBD businesses? Luckily, we’re here for you with a list of the top ten CBD friendly banks you can patronize.

Types of loans available for CBD businesses

1. Bridge loans

Like the word bridge, these loans close the gap between financial solutions and time. Bridge loans are also called swing loans or gap financing. They serve as short term loans that a CBD business can use while waiting for a permanent financial solution. Bridge loans are advantageous. However, they have high-interest rates and may require collateral.

2. Merchant cash advances

Merchant cash advances can help in CBD financing. These are an alternate form of funding instead of traditional business loans. Here, a CBD business is provided with cash advance in exchange for a fixed percentage of its future sales or credit/debit card transactions. Merchant cash advances are suitable for small businesses or CBD startups.

3. Term loans

Term loans give CBD businesses a considerable sum of money for the growth and expansion of the business. Typically, the CBD business pays back principal plus interest in installments for up to 10 years. These term loans can be for the business generally or in the form of equipment/vehicle loans and real estate loans where the equipment or land obtained for the business usually serve as collateral.

4. Private loans

Another type of loan available to CBD businesses is the private loan. Non-bank lenders give out private loans. These private lenders, though common, usually have requirements CBD businesses must fill before applying for and receiving funds. Another noteworthy thing about these loans is that you should ensure the private lender you’re considering for a loan is interested in the particular sector your business serves in the CBD industry as a CBD business owner.

Top 10 CBD Friendly Banks

Now to the crux of our discussion! While there has been an increase in the number of lenders, banks, and other financial institutions considered CBD friendly, we have narrowed the options to the best ten based on our expertise and experience.

Here’s a list of the top 10 CBD friendly banks.

1. Silicon Valley Bank

When it comes to innovation and catching up with the future, the Silicon Valley Bank is far ahead of other banks. This fact is evident in their policies, aims, and even technological development. In addition, Silicon Valley Bank has fewer restrictions in dealing with CBD businesses as they recognize CBD as a healthcare product. Hence, CBD businesses are offered the same services as healthcare industries.

Furthermore, the Silicon Valley Bank publishes regular public reports, which are in turn used by the government to ensure CBD businesses enjoy a better customer experience.

2. North Bay Credit Union

As one of the top CBD friendly banks, The North Bay Credit Union publicly showcases handling CBD transactions. Though this proud display is risky for the bank as these transactions are still considered illegal, it seems unlikely that the North Bay Credit Union will stop opening CBD business accounts anytime soon.

However, there is a limit to the number of deposits a CBD business can make to its capital system at the bank.

3. Bank of the West

CBD financing has never been easier than with the Bank of the West. This bank has many offers, loan options, and products such as car loans, home loans, RV loans, etc.

Moreover, the Bank of the West is all for making a positive impact globally. The bank donates 1% of its profit to protect the environment. Hemp cultivation being valuable and eco-friendly makes it easier for this bank and CBD businesses to collaborate.

4. Chase Bank

The Chase Bank is another bank that can handle a CBD business account. It is now open to giving out loans to CBD businesses; however, it still has some reservations about working with them. The Chase bank is probably waiting for a new legal framework or CBD financial services enabling bill, which is not surprising considering the institution’s size.

It never hurts to tread carefully; hence Chase Bank still makes our list of the top ten CBD friendly banks.

5. Salal Credit Union

As no strangers in the medical industry, the Salal Credit Union had no qualms about accepting CBD as a healthcare product. Since 2014, this bank has opened and handled about 300 accounts for CBD businesses. The Salal Credit Union provides essential banking services to its customers. In addition, it provides tax services, insurance services, and even international wire transfers.

It takes ten days for the bank to complete the necessary background checks on a CBD business, which must first meet basic requirements like a state license, no outstanding taxes, and good credit.

6. Home Bank of Arkansas

As the name implies, the Home Bank of Arkansas is one of the oldest banks in the state, founded in 1908 though initially known as the Peoples Bank of Portland. This bank is into CBD financing and is involved in educating CBD business owners on how to handle their finances.

In addition, the Home Bank of Arkansas is the only CBD friendly bank in the state willing to work with CBD businesses.

7. The Numerica Credit Union

Any list of CBD friendly banks would be incomplete without making mention of The Numerica Credit Union. Like the Salal Credit Union, this bank has handled CBD business accounts since 2014 and has opened over 200 accounts.

Another noteworthy thing about the Numerica Credit Union is its special team dedicated to managing CBD business accounts.

However, the bank only offers its services to CBD businesses within the communities in Washington where its branches operate.

8. The West Town

This bank’s concern with CBD businesses is evident in its special program targeted at hemp business owners. Furthermore, CBD businesses and regular businesses get the same treatment at the West Town, and the bank can give legal advice whenever necessary.

The bank also provides optimal plans for CBD businesses according to current cannabis regulations.

To say the West Town is a CBD friendly bank is an understatement.

9. PenFed Credit Union

Based in North Carolina and Virginia, the PenFed Credit Union cooperates with CBD businesses and aids them financially. This financial institution also gives CBD business owners financial education.

In addition, it offers affordable loans and an excellent refinancing program.

10. Partner Colorado Credit Union

Other financial institutions can boast of accepting cannabis accounts, courtesy of the Partner Colorado Credit Union that taught them how to do it.

Moreover, the Partner Colorado Credit Union is famous for working with cannabis businesses to get digitalized and leave the memo of always handling cash behind.

Other CBD Friendly Banks in 2023

Making a top ten list of CBD friendly banks always means some banks will be excluded as there are lots of them today. However, we just couldn’t bring ourselves to exclude the following because, quite frankly, of how good they are. So not mentioning them, at the very least, will be unfair.

Don’t get us wrong, they aren’t in our top ten CBD friendly banks, but they easily could. In cases where none of the banks in the top ten aren’t accessible for whatever reason, you can be sure these following few banks are ready and capable replacements.

1. Keystone Bank

As a CBD business owner, banking with the Keystone Bank is a plus. The bank uses its resources and expertise to aid hemp businesses in their daily transactions.

2. Timberland Bank

One can undoubtedly say the Timberland Bank is CBD friendly as it offers its services to CBD businesses discreetly. However, higher service charges apply here.

3. The MAPS Credit Union

This Credit Union has stuck with its CBD business customers though reports show that MAPS unintentionally opened its doors to the cannabis industry before officially accepting it.

4. Oklahoma State Bank

The Oklahoma State Bank is on with new technology trends. The bank has an up to date software that monitors recent changes in the regulation of cannabis and adapts its financing strategies accordingly.

5. Patelco Credit Union

One of the best places to apply for a loan as a CBD business owner is the Patelco Credit Union. The bank also assists its customers in achieving their financial goals.

Challenges that may occur in CBD financing

1. Fear of restrictions and all the blurred lines when it comes to the CBD industry

Tetrahydrocannabinol (THC), the psychoactive constituent of marijuana, differentiates between hemp and marijuana. Though the 2018 Farm Bill has legalized the cultivation of hemp and its extracts, CBD products for sale must not contain more than 0.3% THC, or else they will be considered illegal marijuana.

Many banks, financial institutions, and even private lenders are usually reluctant to fund CBD businesses due to a fear of being restricted. The problem is that it is difficult to differentiate between hemp and marijuana with naked eyes except via chemical tests, which is why many banks are skeptical about CBD financing. They worry about the legal implications of supporting CBD business owners as hemp legalization is still a grey area.

Also, the CBD industry is new; it is logical to tread with caution. As a result, there are not so many CBD friendly banks. Hence, it may not be easy for CBD businesses to get loans.

2. Inadequate financial education and knowledge of CBD friendly banks

To start any business, one must first educate oneself on the basics of finance and bookkeeping. It is even more important for someone interested in running a CBD-based business which can be tricky.

The cannabis industry has been growing and showing itself as a profitable industry. Having a CBD friendly bank to partner with is one of the best ways to improve your business.

However, it might be challenging to get funds as a CBD business owner if you don’t have information about the banks that work with the CBD industry around you in your state. Also, not having a detailed, comprehensive plan for your business may hinder getting funds for your business.

3. Accessibility

Finding a CBD friendly bank is one thing; finding a CBD friendly bank that is near you is another. For instance, some CBD friendly banks, e.g., the Numerica Credit Union, only offer their banking services to CBD businesses within the communities where their branches operate.

It is sometimes an issue finding a CBD friendly bank that is close to you and your business. This is one of the hurdles one might face as a CBD business owner.

4. High-interest rates

Another challenge when it comes to CBD financing is high-interest rates. Loans from CBD friendly banks and other financial institutions are usually more affordable. Private lenders, though common, usually give out loans with high-interest rates to CBD business owners.

Loans are necessary for CBD business owners to grow and expand their businesses; however, loans with high-interest rates are discouraging.


Many banks, financial institutions, and even private lenders are reluctant to fund CBD businesses because they still see hemp’s legalization as a grey area. In addition, the CBD industry is new, further contributing to the limited number of CBD friendly banks.

This article gives a brief account of banks that work with CBD businesses and the different types of loans these business owners can get. We have also highlighted the top 10 CBD friendly banks based on our expertise, in no particular order, along with five other banks that are just as CBD friendly as a bonus.

Furthermore, we outlined some challenges that may occur regarding CBD financing. That’s not all we are good at, though!

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