Oklahoma Bankers Association We make bankers better!
On Aug. 7, the Small Business Administration sent a letter to over 5,000 lenders in response to President Trump’s executive order “Guaranteeing Fair Banking For All Americans.”
The letter outlined the executive order and ordered banks to follow the new order.
Pursuant to the Fair Banking Executive Order, banks are required to take the following action:
- By Dec. 5, your institution must identify any past or current formal or informal policies or practices that require, encourage, or otherwise influence your institution to engage in politicized or unlawful debanking as specified by the Fair Banking Executive Order.
- By Dec. 5, your institution must make reasonable efforts to identify and reinstate any previous clients of your institution or any subsidiaries denied service through a politicized or unlawful debanking action in violation of a statutory or regulatory requirement under section 7(a) of the Small Business Act (15 U.S.C. 636) or any requirement in a Standard Operating Procedures Manual or Policy Notice, and send notice of the reinstatement to the injured party;
- By Dec. 5, your institution must identify all potential clients denied access to financial services provided by your institution or any subsidiaries through a politicized or unlawful debanking action in violation of a statutory or regulatory requirement under section 7(a) of the Small Business Act or any requirement in a Standard Operating Procedures Manual or Policy Notice, and provide notice to each otherwise qualified client advising of the denied access and the renewed option to engage in such services previously denied; and
- By Dec. 5, your institution must identify all potential clients denied access to payment processing services provided by your institution or any subsidiaries through a politicized or unlawful debanking action in violation of a statutory or regulatory requirement under section 7(a) of the Small Business Act or any requirement in a Standard Operating Procedures Manual or Policy Notice, and provide notice to each victim advising of the denied access and the renewed option to engage in such services previously denied.
The OBA is working with members of our delegation as well as the ABA to gather as much information as possible. There are still numerous questions that haven’t been answered by the SBA, and we need additional information so you will know exactly what is and isn’t required from you. We’ll keep all our bankers informed as we gathered and decipher new information.