north bay credit union cbd

The third kind of CBD loan is called a Private/Alternative Loans. Non-bank lenders are the most common funding sources for CBD business loans and other types of weed loans commonly sought after within the cannabis industry. These private lenders all have their own requirements for applicants. It’s important to research these requirements before applying for a loan.

c. Private / Alternative Loans

The banks that accept CBD business accounts are;

Does Square Accept CBD Payments?

Numerica is renowned as one of the first financial institutions in the country to work with the industry, having opened cannabis accounts as early as 2014. Since then, they have opened more than 200 accounts. They offer all the basic services including wire transfers and direct-deposit for employees, but also have a team dedicated to cannabis business accounts.

Jerred Kiloh, who heads the Los Angeles-based United Cannabis Business Association, said the agreement represents another encouraging step as more financial institutions open their doors to the industry.

“Since California legalized cannabis, operators have faced significant struggles with banking and payment services, given the federal government’s continued ban on cannabis products,” the group said in a statement. The agreement is intended “to alleviate the banking obstacles that cannabis operators face, so they can focus on their core business.”

The credit union said on its website that it has been offering banking services to the cannabis industry since 2017. Medicinal cannabis sales have been legal in California for over two decades.

The House in September passed a bill to allow businesses legitimately operating under state laws to access loans, lines of credit and other banking services, while sheltering financial institutions from prosecution for handling marijuana-linked money, but it didn’t clear the Senate.

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With growing acceptance of cannabis nationwide, along with regulatory changes, “there are more banks that are willing to tell people they are willing to accept cannabis accounts,” he said.

The Credit Union Times reported: “After posting six-figure losses in 2016 and 2017, and a modest five-figure income in 2018, Live Life FCU recorded income of $426,540 in 2019, which soared to $2.8 million at the end of 2020, according to NCUA financial performance reports.”

In a move JD Supra qualified as “a warning to lenders,” Fraser, Michigan’s Live Life FCU ran afoul of the National Credit Union Administration Board (NCUA) by coupling weak and ineffective marijuana banking policies and procedures with stratospheric financial growth on the immediate heels of years of negative income.

That turn-around in another bank would have been paired with a substantial increase in compliance staff, reflected in another instance cited by the CU Times. The North Bay Credit Union in Santa Rosa, CA increased their “compliance workforce from one to 17 in just one year to ensure that cannabis business members were complying with state and federal regulations.” Live Life FCU, by contrast, added only two compliance employees over the course of its years of marijuana-driven growth.

JD Supra goes on to say that “The NCUA’s enforcement action is widely considered to be the first example of a U.S. regulator publicly criticizing and penalizing a financial institution for compliance-related failures explicitly related to the cannabis industry.” We can guarantee that it will not be the last.

2021 saw some significant, preventable gaffes in marijuana banking. Live Life Federal Credit Union’s apparent misjudgment of what they needed to procedurialize in support of their marijuana banking policies was one of the biggest.

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