Status
The Veterans Member Business Loan Act (S.539) was introduced in the Senate on February 28, 2023.
Our Position
DCUC is the industry’s lead proponent on this legislation and worked with the Hawaii and Alaska leagues to get it introduced in the Senate. This legislation would 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. 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.
Background
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.
Note: The current cap was imposed by Congress through the Credit union Membership Access Act of 1998.
Resources
The Veterans Member Business Loan Act (S.539) was introduced in the Senate on February 28, 2023.
Our Position
DCUC is the industry’s lead proponent on this legislation and worked with the Hawaii and Alaska leagues to get it introduced in the Senate. This legislation would 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. 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.
Background
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.
Note: The current cap was imposed by Congress through the Credit union Membership Access Act of 1998.
Resources