Facebook holding account hostage for sensitive info

That's a pretty standard request to verify your identity.

I had to give a copy of my business license and ID to the local Costco to get a membership card.

If you don't want to give them that information, then they don't have to provide your business with their service. You're not entitled to it.

FB owns it, FB makes the rules. Maybe they think you are impersonating someone else.

How are they holding something they own hostage?