SBA Directs Financial Institutions To End, Correct Debanking Actions

Citing President Trump's Executive Order, the SBA has sent letters to its network of more than 5,000 lenders instructing them to end what the Trump Administration said is politicized or unlawful debanking.

The SBA is requiring all lenders to stop debanking and reinstate qualified customers who were denied services on the basis of political, religious or ideological beliefs. "Lenders who fail to comply with these directives will lose their good standing with the SBA and will be subject to additional punitive measures," the SBA said.

"Since the Obama Administration, financial institutions have – both independently and at the direction of federal regulators – weaponized the banking system against Americans who refused to bend the knee to a partisan ideology," SBA Administrator Kelly Loeffler said. "Access to banking should not be a partisan issue – but far too many confirmed debanking cases have targeted right-leaning businesses, non-profits, and people – including