America’s Credit Unions (AmCU) called on the U.S. Small Business Administration (SBA) to take action on growing concerns about “debanking” practices that can leave small businesses without access to critical financial services.
In a letter to SBA officials Tuesday, AmCU said small business owners, particularly those in industries considered high risk, face account closures or restrictions without clear explanation. The group warned this lack of transparency can disrupt operations, cut off access to credit and jeopardize local economies.
AmCU outlined several recommendations for the agency. These included requiring greater disclosure when a financial institution decides to terminate or restrict services, developing clearer definitions of what constitutes “high-risk” activity and ensuring consistent treatment across financial institutions. The letter also urged the SBA to provide explicit guidance that protects lawful businesses from being unfairly excluded from lending or payment systems.
AmCU highlighted the role credit unions play in serving small businesses, emphasizing their cooperative model and community focus. The organization argued that credit unions are uniquely positioned to support small businesses, but need clearer regulatory assurances to do so confidently.
“Small businesses are the backbone of the economy,” AmCU wrote, urging the SBA to use its authority to safeguard fair access to financial services. “By ensuring transparency and accountability, the agency can help prevent debanking practices from undermining entrepreneurship and local growth.”
The SBA said it is reviewing industry input as it considers potential steps on the issue.
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