DCUC Prompts House Committee for Action on Veteran Small Business Lending, America’s 250th

WASHINGTON, DC – In advance of the House Committee on Small Business' July 1 hearing, "250 Years of American Legacy: Small Businesses and the American Dream," the Defense Credit Union Council (DCUC) submitted official comments in support of the Veterans Member Business Loan Act (H.R. 507/S. 110), legislation that would expand access to affordable capital for veteran-owned small businesses. ​

In its letter to Chairman Roger Williams and Ranking Member Nydia M. Velázquez, DCUC shared that as the nation approaches its 250th anniversary, Congress has an opportunity to honor and support veterans by removing unnecessary barriers to entrepreneurship. 
 
"Veteran entrepreneurs face persistent and well-documented barriers to capital. Many transition from military service without long private-sector credit histories, traditional collateral, or steady civilian income records. Frequent relocations, deployments, and career transitions can complicate underwriting even when the borrower has a viable business plan, strong character, and proven leadership ability. Many veterans are forced to rely on personal savings, credit cards, or higher-cost financing to launch or expand their businesses. That is not a lack of ambition; it is a policy failure that prevents capable veterans from fully participating in the American Dream." 
 
DCUC noted that credit unions are uniquely positioned to serve veteran entrepreneurs through relationship-based lending but are constrained by the federal Member Business Lending cap.  
 
“The Veterans Member Business Loan Act would exclude loans made to veterans from that cap, allowing credit unions to responsibly expand lending without compromising safety and soundness or requiring taxpayer funding,” says Jason Stverak, DCUC Chief Advocacy Officer.  
 
Stverak added: 
“In practice, the cap can force credit unions to turn away qualified veteran borrowers not because the borrower is too risky, not because the credit union lacks capital, and not because underwriting standards cannot be met — but because an outdated regulatory ceiling has already been reached. No veteran with a sound business plan should be told, “We have hit our limit,” because of a decades-old rule that does not reflect today’s economy." Credit unions would still be required to make prudent loans, follow applicable underwriting standards, and comply with regulatory oversight. Vets MBL simply removes an arbitrary barrier that prevents responsible lenders from doing more for those who have served. This reform would have immediate and meaningful benefits.”  
 
DCUC also urged the House Committee on Small Business to work with the House Financial Services Committee and House leadership to advance the bipartisan legislation. 
 
"America's veterans deserve a fair opportunity to pursue their entrepreneurial goals and access the capital needed to succeed," says Anthony Hernandez, DCUC President/CEO, Ret. U.S. Air Force Colonel. "Passing the Veterans Member Business Loan Act would remove an outdated barrier, expand responsible access to small-business financing, and empower more veterans to build businesses, create jobs, and continue serving their communities." ​