Veteran Business Lending Exemption (H.R. 2305)


Ongoing (Introduced to House Financial Services Committee on April 12, 2019)


Our Position

DCUC supports legislation to amend the Federal Credit Union Act to exclude extensions of credit made to veterans and military members from the definition of a member business loan.



A November 2018 report titled “Financing Their Future: Veteran Entrepreneurs and Capital Access” put out by the SBA and Federal Reserve Bank of New York found that veteran business owners applied for more funding, submitted more loan applications per business, and yet were denied loans at a much higher rate than non-veteran business owners.

There is a real need for small dollar business loans in the veteran space. Credit unions are interested and willing to serve their veteran members’ needs yet are currently hampered by the current rules in place that cap their business loans to a small percentage of their total assets. Exempting veteran business loans from this cap would give veterans a better chance at securing the funding they need to grow and improve their businesses.

Defense credit unions have been making member business loans (MBLs) since the first started appearing on military installations in the early 1900s. Throughout their history, there was no limitation or cap on the amount of business loans. The current cap was imposed by Congress through the Credit union Membership Access Act of 1998.


In the News - HR 2305

Item Name Posted By Date Posted
DCUC Urges Congress...(CUToday, March 23, 2020)  Link Administration 4/3/2020

Letters & Comments - HR 2305

Item Name Posted By Date Posted
Letter to House Fin Svc Cmte on H.R. 2305 PDF (203.74 KB) Administration 4/3/2020
Letter to Senate Banking Cmte on H.R. 2305 PDF (208.75 KB) Administration 4/3/2020

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