The Defense Credit Union Council (DCUC) submitted letters to key House committees this week, pressing lawmakers to modernize credit union rules that limit business lending and emergency liquidity, and to expand small business capital access for veterans.
Support for Community Banks and Liquidity Reform
In a letter to Rep. French Hill (R-Ark.), chairman of the House Financial Services Subcommittee on Financial Institutions, DCUC commended the Community Banks Deposit Access Act and urged lawmakers to extend similar relief to credit unions. Jason Stverak, DCUC’s chief advocacy officer, said outdated restrictions such as the federal member business lending cap, set at 12.25% of assets, unfairly restrain credit unions from financing local entrepreneurs.
“Credit unions aren’t looking for special treatment – we’re looking for equal treatment,” Stverak wrote, adding that the cap forces credit unions to turn away qualified borrowers, including veteran-owned small businesses.
DCUC also called for restoring and modernizing the Central Liquidity Facility, a backstop credit unions used during the pandemic, to ensure small institutions can withstand future crises.
Focus on SBA Lending and Veteran Entrepreneurs
In a separate letter to the House Small Business Committee, DCUC urged lawmakers to expand credit union participation in Small Business Administration lending programs and pass the bipartisan Veterans Member Business Loan Act. The bill would exempt veteran business loans from the credit union lending cap, unlocking new capital for military entrepreneurs.
Stverak emphasized that veteran-owned businesses, which employ more than five million Americans, face disproportionate hurdles to credit access. “By carving out veteran business loans from the cap, Congress can unleash existing lending capacity … all at no cost to taxpayers,” he said.
DCUC also opposed proposals for the SBA to become a direct lender, arguing community-based institutions like credit unions are better positioned to serve small businesses with relationship-based lending.
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