DCUC Calls on HFSC Subcommittee to Support Veterans Member Business Loan Act (VMBLA)

​The Defense Credit Union Council (DCUC) has sent a letter to the House Financial Services Committee’s (HFSC) Subcommittee on Capital Markets ahead of its hearing on capital formation. 

In the letter, DCUC advocates for the Veterans Member Business Loan Act (VMBLA), recently introduced legislation designed to expand access to capital for veteran entrepreneurs by exempting veteran business loans from the existing member business lending (MBL) cap. DCUC’s letter highlighted how veteran entrepreneurs face significant financial barriers, including higher loan denial rates, limited access to traditional credit sources, and an over-reliance on personal savings.

Credit unions—particularly those committed to serving military and veteran communities—are well-positioned to address these challenges. However, outdated lending restrictions limit their ability to fully support veteran-owned businesses. “Lifting the MBL cap specifically for veteran-owned businesses would be a meaningful step toward increasing economic opportunities for those who have served our nation. This measure would foster job creation, strengthen local economies, and reduce reliance on predatory lending,” says Anthony Hernandez, DCUC President/CEO.

In the letter, DCUC Chief Advocacy Officer Jason Stverak added, “America’s veterans have demonstrated unparalleled dedication and sacrifice in service to our nation. Now, it is our responsibility to ensure they have the economic opportunities they deserve. Lifting the MBL cap for veteran-owned businesses is a common-sense, bipartisan solution that will empower veterans, strengthen small businesses, and drive economic growth.” Veteran-owned businesses are a critical component of the U.S. economy. However, the number of veteran-owned businesses has declined in recent years, drawing attention to the growing need for improved financial support in these areas.

Exempting veteran business loans from the MBL cap would provide significant economic and social benefits, including:
• Expanded Access to Capital – Credit unions would have the flexibility to offer more affordable loans to veteran entrepreneurs, reducing their reliance on personal savings and high-cost lenders.
• Job Creation and Economic Growth – With increased funding, veteran-owned businesses could expand operations, hire more employees, and contribute to stronger local economies.
• Fair and Equitable Lending – Aligning veteran business loans with existing exemptions for agricultural loans ensures that those who have served our nation are not disadvantaged when seeking business financing.
• Strengthened National Security Through Economic Empowerment – Improved economic prospects for veterans enhance military readiness and retention, providing greater confidence for service members transitioning to civilian life.

​DCUC urges lawmakers to recognize the significant contributions of veteran entrepreneurs and take action by passing the Veterans Member Business Loan Act. Providing veterans with the financial tools they need to succeed in business is not just an investment in their future—it is an investment in America’s economic strength and prosperity.