DCUC Applauds Bipartisan Efforts to Expand Veteran Business Loan Access

WASHINGTON, D.C. – Today, the Defense Credit Union Council (DCUC) celebrates the U.S. House and Senate’s support of the Veterans Member Business Loan (VMBL) Act, vital legislation empowering veteran entrepreneurs by removing arbitrary lending caps currently hindering credit unions from fully supporting service members and veterans in their business ventures. The current lending caps were first imposed by Congress through the Credit Union Membership Access Act of 1998. See the official congressional announcement here. ​

Championed by prime sponsors, Senators Mazie Hirono (D-HI) and Dan Sullivan (R-AK) and Representatives Vicente Gonzalez​ (D-TX) and Brian Fitzpatrick (R-PA), the VMBL Act seeks to amend the Federal Credit Union Act (FCUA) to exclude loans made to veterans and military members from the restrictive definition of "member business loans." The total bipartisan support gained momentum, garnering endorsements from twenty additional representatives, including: Jim Costa (CA-21); Jill Tokuda (HI-02); Juan Ciscomani (AZ-06); Julia Brownley (CA-26); Jared Golden (ME-02); Sheila Cherfilus-McCormick (Fl-20); Gerald E. Connolly (VA-11); Andy Biggs (AZ-05); David Valadao (CA-22); Henry Cuellar (TX-29); Dina Titus (NV-01); Suzanne Bonamici (OR-01); Stephen Lynch (MA-08); André Carson (IN-07); Hal Rogers (KY-05); Tom Cole (OK-04); Josh Gottheimer (NJ-05); Pat Ryan (NY-19); John Rutherford (FL-05); and Eli Crane (AZ-02). 
Anthony Hernandez, DCUC President and CEO, emphasized the broader significance of the VMBL Act: "Our veterans have dedicated their lives to safeguarding our nation, our national security, and our way of life. Supporting their transition to successful business ownership is more than a financial issue; it’s a way to honor their service and contributions. DCUC thanks each of the sponsors for recognizing the importance of supporting our veterans in the true spirit of bipartisan collaboration.”  
Since 2018, DCUC has called for congressional support to advance this legislative initiative, aiming to empower veterans with enhanced resources to achieve their entrepreneurial dreams. DCUC has been the leading advocate for credit unions when addressing their concerns about barriers to serving veteran communities and bringing these issues to the attention of policymakers; see DCUC’s letters sent to both Houses of Congress on the VMBL here.  
In a letter sent to the House last July, DCUC called for legislative action and encouraged the House Small Business Committee to support the bipartisan bill, stating, “Credit unions are uniquely positioned to serve veterans as they work to start small businesses as they transition to the private sector. Removal of the cap would provide additional economic stimulus without costing taxpayer dollars. Credit unions remain committed to helping America’s small businesses while maintaining safe liquidity ratios.”  
DCUC later sent a letter to the Senate Small Business and Entrepreneurship Committee, referencing a November 2018 report titled “Financing Their Future: Veteran Entrepreneurs and Capital Access,” published by the SBA and Federal Reserve Bank of New York. The study revealed that veteran business owners face higher loan denial rates compared to non-veteran applicants, despite submitting more loan applications and seeking greater funding. DCUC has repeatedly highlighted this disparity in its calls for legislative action.  
DCUC commends this bipartisan support and thanks both houses of Congress for their leadership in addressing this critical challenge. These efforts embody a shared commitment to ensuring veterans have equitable opportunities to pursue the American dream of business ownership.  
“In the coming months, we will continue advocating for this essential legislation, which will not only champion our veterans but also strengthen local economies across the country,” Stverak added.  
As the VMBL Act progresses through Congress, DCUC and its member credit unions remain steadfast in their mission to advocate for those who have served our country. By removing outdated restrictions to financing, DCUC believes this legislation will pave the way for veteran-owned businesses to flourish, creating jobs, strengthening communities, and driving innovation across America. 
For more information, please contact Jason Stverak at [email protected] and visit dcuc.org/advocacy.