SBA Orders 5,000 Lenders to End Politicized Debanking

The Small Business Administration (SBA), under President Donald Trump's directive, has ordered over 5,000 lenders to cease politicized or unlawful banking practices known as debanking, where financial institutions deny services based on political, religious, or ideological beliefs. This move reverses policies from previous Democratic administrations, often referred to as Operation Chokepoint, which targeted right-leaning organizations and even President Trump’s own businesses. Lenders must flag past policies encouraging such discrimination, reinstate excluded customers, and submit compliance reports by early 2026 to maintain SBA standing. The SBA also mandates the removal of 'reputational risk' from federal banking guidance and requires banking regulators to review and refer unlawful debanking cases to the Attorney General's office. SBA Administrator Kelly Loeffler emphasized that any bank retaliating against eligible customers on ideological grounds will face accountability, underscoring the administration’s commitment to protecting access to financial services for small businesses. This regulatory shift aims to end discriminatory practices that have adversely impacted Christian, pro-life, Second Amendment groups, and conservative entities.