SBA meeting addresses need for clarity when responding to debanking EO

In a meeting with Small Business Administration leaders Thursday, America’s Credit Unions emphasized credit unions’ stance on the recent executive order on debanking, and concerns with a letter the agency sent to its network of more than 5,000 lenders last week. It instructed recipients to end the practice of debanking and provide documentation on past or current policies or practices.  

While credit unions intend to comply with the executive order and haven’t participated in debanking, America’s Credit Unions Head of Regulatory Advocacy James Akin expressed concerns with the lack of specific time limits, scope or duration for the request. Akin noted that no credit union examples of debanking have been mentioned, neither in President Donald Trump’s remarks on the subject nor in the SBA’s list of specific examples in its letter.  

As member-owned financial institutions dedicated to ensuring all Americans have fair access to financial services, credit unions determine financial access decisions based on individualized, objective, and risk-based criteria, as well as common bond requirements set by law.  

The broad documentation request is challenging because many credit unions are decades old and have gone through mergers and other restructuring that could make these requests burdensome. 

The organization will continue to work with the SBA and administration to establish a reasonable scope and duration for the request, as well as to ensure clarity in guidance and standardized responses.