DCUC Urges Senate Committee to Support Veteran Business Lending and SBA Loan Program Reforms

The Defense Credit Union Council (DCUC) has called on the Senate Committee on Small Business & Entrepreneurship to support the Veterans Member Business Loan Act (VMBLA) and implement crucial reforms to the Small Business Administration (SBA) 7(a) Loan Program. ​

In a letter to the Committee, DCUC stressed the pressing need to expand access to capital for veteran entrepreneurs by removing outdated lending restrictions and improving credit union participation in SBA loan programs. Veterans possess the leadership, discipline, and resilience necessary for business success, yet they continue to face significant obstacles in securing financing.

Higher loan denial rates, limited credit histories, and a heavy reliance on personal savings have contributed to a decline in veteran business ownership in recent years. Despite their strong qualifications, many veterans struggle to access affordable loans, limiting their ability to launch and grow businesses.

DCUC’s letter shared how credit unions play a vital role in serving military and veteran communities, yet current regulations impose arbitrary constraints on their ability to lend to veteran entrepreneurs. The Veterans Member Business Loan Act (VMBLA) would address this issue by lifting the 12.25% cap on member business lending for veteran-owned businesses, allowing credit unions to provide more financing without increasing systemic risk.

Additionally, modernizing the SBA 7(a) Loan Program is essential to ensuring that more credit unions can participate and extend critical funding to veteran-owned small businesses.

“Veteran entrepreneurs are a cornerstone of the American economy, yet they continue to face systemic barriers to capital,” says DCUC Chief Advocacy Officer Jason Stverak. “By lifting unnecessary lending restrictions and improving SBA loan accessibility, Congress can empower veterans with the financial tools needed to succeed in business ownership.”

DCUC’s letter highlights the unique challenges veterans encounter, including higher loan denial rates, lower approval rates for SBA loans, limited credit history, and less private-sector financial experience. Many veterans rely on personal savings to fund their businesses, leaving them financially vulnerable and limiting their ability to grow. DCUC shared how the Veterans Member Business Loan Act would directly address these issues by expanding credit union lending capabilities and removing unnecessary regulatory barriers. In addition to supporting this legislation,

DCUC urges the Committee to modernize the SBA 7(a) Loan Program, which currently presents administrative hurdles that discourage credit union participation. Simplifying loan requirements, providing technical assistance for credit union staff, and ensuring regulatory fairness across financial institutions would enhance veteran access to SBA-backed funding.

​DCUC calls on Congress to prioritize these reforms and ensure that those who have served our nation have the financial support they need to succeed as business owners.