WASHINGTON, D.C. (January 27, 2025) |
This morning, the Defense Credit Union Council (DCUC) sent a letter to the Senate Committee on Small Business and Entrepreneurship regarding the confirmation of The Honorable Kelly Loeffler as Administrator of the Small Business Administration (SBA).
In the letter, DCUC Chief Advocacy Officer Jason Stverak shared how credit unions—member owned, not-for-profit financial cooperatives—continue to provide essential financial services to underserved communities, including military families, at lower costs than for-profit institutions.
Stverak emphasized how credit unions, notably defense credit unions, carry a long history and mission in supporting veteran and military-family-owned businesses, providing tailored financial services that continue to foster local economic growth.
DCUC’s letter outlined several barriers currently hindering credit unions’ ability to fully support small businesses, including complex processes: overly bureaucratic SBA loan procedures deter participation; limited collaboration: credit unions face unequal access to SBA programs compared to larger banks; lending caps: member business lending (MBL) caps restrict credit unions from adequately serving small businesses; and veteran capital access: veteran-owned businesses often struggle to secure funding, a gap defense credit unions are poised to fill.
To strengthen partnerships between credit unions and the SBA, DCUC urged Administrator Loeffler to prioritize:
- Streamlining Loan Programs: Simplify processes to ease administrative burdens. • Expanding Credit Union Engagement: Ensure equitable access to SBA programs. • Supporting the Veterans Member Business Loan Act: Exempt loans to veteran owned businesses from the MBL cap.
- Improving Access for Underserved Communities: Address gaps for minority, rural, and veteran entrepreneurs.
DCUC’s letter also stressed the need to address disparities veteran entrepreneurs face, such as experiencing higher financing shortfalls and lower loan approval rates than nonveterans. DCUC believes by removing the MBL cap for veteran-owned businesses, defense credit unions can be enabled to better address these challenges for these important communities.
DCUC concluded its letter urging the Senate to strengthen SBA collaboration with credit unions, maximizing support for veteran-owned small businesses and fostering economic growth nationwide.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.