DCUC Calls for Parity and Expanded Small Business Lending in Deposit Insurance Reform

​WASHINGTON, DC – The Defense Credit Union Council (DCUC) has voiced strong support for modernizing deposit insurance and urges Congress to pair these reforms with expanded small business lending authority for credit unions.
 
In a letter to Senators Hagerty and Alsobrooks, DCUC’s Chief Advocacy Officer, Jason Stverak, commended the recent amendment to the FY2026 National Defense Authorization Act, which proposes to raise deposit insurance coverage on business transaction accounts to $20 million for community financial institutions.

“This proposal closes a dangerous gap for small businesses,” says Stverak. “Payroll and operating funds must be safe and available, even during financial instability.”
 
In the letter, Stverak highlighted three priorities as Congress considers reforms:
 

• Protect Small Business Deposits: DCUC noted that higher coverage for operating accounts ensures businesses can meet payroll and essential expenses. 
• Maintain Parity: DCUC stressed that credit unions must have equal authority as banks through the National Credit Union Administration (NCUA). 
• Pair Reform with Lending Relief: DCUC voiced its continued support for the bipartisan Veterans Member Business Loan Act and recommends Congress lift or ease the outdated cap that limits credit unions’ ability to serve local businesses.

 
“Veteran entrepreneurs deserve full access to capital, and credit unions are uniquely positioned to provide it,” says Stverak. “By coupling stronger deposit protections with expanded credit opportunities, DCUC believes Congress can safeguard small businesses while fueling local economic growth.”
 
“Deposit insurance reform and MBL relief go hand-in-hand,” Stverak adds. “Together, they strengthen small businesses, protect jobs, and level the playing field between Wall Street and Main Street.”
 
See DCUC’s official letter here.