Raleigh, NC — Yesterday, Republicans in the North Carolina state legislature advanced Senate Bill 554, misleadingly titled the “Farmers Protection Act,” which would prevent banks and financial institutions from considering responsible investing factors when making lending or service decisions for agricultural businesses. If enacted, the bill would effectively force banks and other financial entities to ignore certain material financial risks in their decision-making processes and force financial institutions to provide services regardless of whether a customer is implementing smart and sustainable agriculture practices.
Today, Unlocking America’s Future issued the following statement in response to Senate Bill 554 moving forward in the North Carolina Senate:
“By advancing Senate Bill 554, deceptively called the ‘Farmers Protection Act,’ North Carolina lawmakers are recklessly putting partisan politics ahead of North Carolina’s economic health, putting families and businesses at direct financial risk,” said Kyle Herrig, spokesperson for Unlocking America’s Future. “This dangerous legislation would force financial institutions to operate with their hands tied behind their backs, preventing them from properly assessing legitimate financial risks. The resulting regulatory chaos wouldn’t just hurt financial institutions — it would create a ripple effect of increased costs for North Carolina families and businesses.”
Senate Bill 554 has a companion bill in the House — House Bill 62 — which contains identical provisions and has already been approved by several House committees. This coordinated push in both chambers demonstrates a concerning part of a broader ideological campaign that puts partisan politics above effective governance and North Carolina’s families and businesses.
How Anti-Responsible Investing Bill Would Harm North Carolina’s Economy:
This bill represents political interference in sound business. By restricting what risks North Carolina financial institutions can consider, they would:
- Force loan officers to ignore certain material financial risks
- Create regulatory confusion for North Carolina financial institutions and the businesses that rely on them
- Disadvantage North Carolina in competing for future-focused industries and jobs
Responsible investing isn’t about politics—it’s about smart economics. By considering all material factors that affect long-term value, responsible investing approaches help create sustainable growth, good-paying jobs, and a more resilient North Carolina economy.
More information about Senate Bill 554 and its impact can be found here. To speak with a business leader or UAF spokesperson about this legislation, please email us at press@unlockingamericasfuture.org.
