WASHINGTON, DC (April 20, 2026) |
The Defense Credit Union Council (DCUC) sent a letter to the House Committee on Small Business ahead of its hearing, “Independent Work, Real Opportunity: The Gig Economy and the Future of Entrepreneurship,” highlighting barriers veterans face in accessing capital to start and grow small businesses.
DCUC noted that while veterans bring strong leadership and mission-driven experience, many encounter structural obstacles in traditional lending models, including limited credit history, income disruption from deployments, and lack of collateral. These challenges are compounded by the rise of gig economy and independent work, where non-traditional income streams often do not fit conventional underwriting standards.
As a result, DCUC stressed how many veteran entrepreneurs are unable to access affordable financing despite strong earning potential and viable business plans, contributing to a decline in veteran small business ownership.
DCUC pointed to credit unions as key partners in addressing these gaps through relationship-based lending. However, it warned that the statutory Member Business Lending (MBL) cap continues to restrict credit unions from fully meeting demand.
DCUC strongly urged Congress to advance the bipartisan Veterans Member Business Loan Act (H.R. 507 / S. 110), which would exempt loans to veteran-owned small businesses from the MBL cap while maintaining existing safety and soundness standards.
“DCUC has consistently raised this issue to Congress and this Committee. The MBL cap is not merely a regulatory constraint,it is a direct barrier preventing veteran entrepreneurs from accessing responsible, affordable credit,” says Jason Stverak, DCUC Chief Advocacy Officer.
“Veterans are well-positioned to succeed in entrepreneurship, but outdated lending frameworks too often fail to recognize their real-world earning potential in today’s gig economy,” states Anthony Hernandez, DCUC President/CEO, Retired U.S. Air Force Colonel. “Removing unnecessary barriers like the MBL cap would allow credit unions to deploy their own resources to support veteran-owned businesses, strengthen local economies, and expand financial opportunity for those who have served.”
DCUC reaffirmed its readiness to work with Congress to advance bipartisan, practical solutions that expand access to capital for veteran entrepreneurs and support long-term economic mobility.