CHARLESTON, W.Va. – U.S. Senator Shelley Moore Capito (R-W.Va.) along with 19 senators urged U.S. Treasury Secretary Steven Mnuchin, Federal Reserve Chairman Jerome Powell, and the Small Business Administration (SBA) Administrator Jovita Carranza to protect Second Amendment-related industries from discrimination by financial institutions.

“Several of the nation’s systemically important financial institutions use their market dominance to financially discriminate against legal and compliant businesses for political reasons. This includes the firearms and ammunition industries,” the senators wrote. “A vocal but small minority has weaponized federally-backed banks against politically disfavored businesses that operate in good faith and compliance with the law, by denying them financial services based on political reasons that have nothing to do with creditworthiness.”

Senator Capito was joined on the letter by Senators Kevin Cramer (R-N.D.), John Cornyn (R-Texas), Rand Paul (R-Ky.), Ted Cruz (R-Texas), Rick Scott (R-Fla.), Steve Daines (R-Mont.), Tom Cotton (R-Ark.), Lisa Murkowski (R-Alaska), Mike Lee (R-Utah), Joni Ernst (R-Iowa), Cindy Hyde-Smith (R-Miss.), Jim Inhofe (R-Okla.), John Barrasso (R-Wyo.), John Hoeven (R-N.D.), Ben Sasse (R-Neb.), Mike Braun (R-Ind.), and Josh Hawley (R-Mo.). The senators also received support from industry leaders.

In the letter, the senators ask SBA to clarify: 

  • What efforts have SBA and the administration made to ensure the nation’s largest financial institutions approve and distribute Paycheck Protection Program (PPP) and other SBA disaster relief funds in a prioritized and unbiased manner?
  • How has SBA and the administration communicated to large financial institutions that current SBA 7a Loan Program eligibility regulations are to be strictly adhered to?
  • How does SBA and the administration address potential conflicts between social governance responsibility commitments of financial institutions which violate or contradict SBA loan program eligibility regulations?

Click here for text of the letter.

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