Hemp Banking Iowa

Herring Bank proudly offers its Hemp and CBD Banking Program, designed to meet the unique financial needs of Iowa’s hemp and CBD industry. With specialized business checking accounts, your funds are managed securely, enabling smooth day-to-day operations. Our accounts come with 24/7 online banking, allowing you to oversee your finances anytime, anywhere, and simplifying consumer payments and electronic tax submissions to maintain compliance and efficiency.

Advanced Business Checking Accounts for Hemp and CBD Businesses

Our tailored business checking accounts are the cornerstone of financial management for hemp and CBD companies. These accounts are designed to streamline cash flow, ensuring secure and efficient transactions. Paired with features like debit cards, online banking, and secure payment processing, Herring Bank’s checking accounts give you the flexibility and control needed to manage your finances effectively. Additionally, optional services like secure cash pick-up and delivery further enhance your business operations by minimizing cash-handling risks.

End-to-End Workforce Payment Services

Support your employees with direct deposit payroll, ACH transfers, and wire services, all seamlessly integrated with our business checking accounts. By focusing on efficient and secure payment processes, Herring Bank empowers Iowa’s hemp and CBD businesses with the tools needed to thrive in a competitive market.

As of January 2025, Iowa’s hemp industry is undergoing significant regulatory changes that impact cultivation, processing, and the sale of consumable hemp products.

Regulatory Changes in Hemp Cultivation

Effective January 1, 2025, the responsibility for issuing hemp cultivation licenses in Iowa has transitioned from the Iowa Department of Agriculture and Land Stewardship (IDALS) to the United States Department of Agriculture (USDA). Consequently, IDALS ceased its licensing program on December 31, 2024. Prospective hemp growers in Iowa must now apply directly to the USDA for cultivation licenses. (Iowa Department of Agriculture)

Consumable Hemp Product Regulations

The Iowa Department of Health and Human Services (HHS) continues to regulate the manufacture and sale of consumable hemp products within the state. As of July 1, 2024, House File 2605 imposed new restrictions, including:

• THC Limits: Consumable hemp products are limited to 4 milligrams of tetrahydrocannabinol (THC) per serving and a maximum of 10 milligrams per container.
• Age Restrictions: Sale of consumable hemp products is restricted to individuals aged 21 and over.
• Prohibited Products: The law bans the inclusion of synthetic THC and prohibits products intended for inhalation.
• Labeling Requirements: Products must feature warning labels similar to those found on alcohol, informing consumers of potential risks.

Economic Impact and Industry Response

These regulatory changes have prompted concerns among Iowa’s hemp businesses. Some industry stakeholders argue that the stringent THC limits and product prohibitions could negatively affect the market, potentially leading to the closure of CBD stores across the state. The Iowa Hemp Alliance has highlighted efforts by certain organizations to further restrict or ban consumable hemp products, which could significantly impact the industry’s viability. (Iowa Hemp Alliance)

Banking and Financial Services

Navigating financial services remains a critical issue for hemp businesses due to the complex regulatory environment. While hemp is federally legal, its association with cannabis can lead to cautious approaches from financial institutions. However, banks like Herring Bank have developed specialized programs to support hemp-related businesses, offering services such as checking and savings accounts, online banking, and cash management solutions tailored to the industry’s unique needs.

Herring Bank provides hemp banking services to businesses in Iowa, including but not limited to the following cities:

Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Waterloo, Ames, West Des Moines, Council Bluffs, Ankeny, Dubuque, Urbandale, Marion, Bettendorf, Mason City, Ottumwa, Cedar Falls, Clive, Johnston, and Altoona.

Our services are designed to support the financial needs of hemp businesses across the state, offering tailored banking solutions to help you grow and thrive.