SBA Sets December Deadline for Banks to Follow Trump’s “Fair Banking” Order

The Small Business Administration (SBA) has told banks and lenders that take part in its loan programs they must follow President Trump’s new “Fair Banking” executive order. The rule is aimed at stopping “debanking” — when financial institutions deny services based on politics, religion, or other non-financial reasons.

Banks have until December 5, 2025 to review their records, notify anyone who may have been denied access to loans or services for improper reasons, and give them a fair chance to apply again. After that, by January 4, 2026, banks must send proof of compliance back to the SBA.

Why This Matters for Small Business Owners

For small businesses, especially those in politically sensitive or faith-based industries, this order could be a game-changer.

Fairer Access to Loans
If you’ve ever been turned down for financing for reasons that felt unrelated to your business performance, this order means banks must now explain their decisions based strictly on financial risk.

More Opportunities
Businesses that were shut out of SBA-backed loans in the past because of “reputational risk” — a vague standard regulators used — may now have the door reopened.

Checks on Banks
Lenders must review their practices and prove they aren’t unfairly excluding businesses. This could level the playing field for small and mid-sized companies that don’t have the same clout as big corporations.

What Small Business Owners Should Do

Review Past Applications: If your loan or banking services were denied in the past and you suspect non-financial reasons played a role, you may get another opportunity.

Stay Informed: Banks will be sending notices to businesses they previously denied — watch your mail and email closely.

Be Prepared: Have updated financials and business documents ready in case you get the chance to reapply.

Ask Questions: If you feel a denial wasn’t fair, this is the time to raise it with your bank or lender.

Bottom Line

The SBA’s December 5 deadline puts banks on notice: they must offer small businesses equal access to financial services, free from politics or outside pressures. For entrepreneurs, this could mean more chances to secure loans, credit, and payment processing — vital lifelines for running and growing a business.