WASHINGTON, D.C. (January 16, 2025) |
Today, the Defense Credit Union Council (DCUC) celebrates the U.S. Senates’ support of the Veterans Member Business Loan (VMBL) Act, vital legislation empowering veteran entrepreneurs by removing arbitrary lending caps currently hindering credit unions from fully supporting service members and veterans in their business ventures. The current lending caps were first imposed by Congress through the Credit Union Membership Access Act of 1998. See the official congressional announcement here.
The VMBL Act, championed by Senators Mazie Hirono (D-HI) and Dan Sullivan (R-AK), seeks to amend the Federal Credit Union Act (FCUA) to exclude loans made to veterans and military members from the restrictive definition of “member business loans.”
DCUC has been the leading advocate for credit unions on this issue, addressing their concerns about barriers to serving veteran communities and leading the charge in bringing this to the attention of policymakers; see DCUC’s letters sent to both Houses of Congress on the VMBL here. Since 2018, DCUC has persistently championed the need for Congressional support to advance this legislative initiative, aiming to empower veterans with enhanced resources to achieve their entrepreneurial dreams.
In its letter sent to the Senate Small Business and Entrepreneurship Committee last September, DCUC referenced a November 2018 report titled “Financing Their Future: Veteran Entrepreneurs and Capital Access,” published by the SBA and Federal Reserve Bank of New York. The study revealed that veteran business owners face higher loan denial rates compared to non-veteran applicants, despite submitting more loan applications and seeking greater funding. DCUC has repeatedly highlighted this disparity in its calls for legislative action.
DCUC commends the bipartisan coalition of the House and Senate for their leadership in addressing this critical challenge. These efforts embody a shared commitment to ensuring veterans have equitable opportunities to pursue the American dream of business ownership.
“In the coming months, we will continue advocating for this essential legislation, which will not only champion our veterans but also strengthen local economies across the country,” Stverak added.
Anthony Hernandez, DCUC President and CEO, emphasized the broader significance of the VMBL Act: "Our veterans have dedicated their lives to safeguarding our nation, our national security, and our way of life. Supporting their transition to successful business ownership is more than a financial issue; it’s a way to honor their service and contributions. DCUC thanks each of the sponsors for recognizing the importance of supporting our veterans in the true spirit of bipartisan collaboration.”
As the VMBL Act progresses through Congress, DCUC and its member credit unions remain steadfast in their mission to advocate for those who have served our country. By removing outdated restrictions to financing, DCUC believes this legislation will pave the way for veteran owned businesses to flourish, creating jobs, strengthening communities, and driving innovation across America.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.