While Congress gears up to talk about helping community banks expand capital access—because “Main Street Capital Access Act” sounds pretty important—the Defense Credit Union Council (DCUC) is basically raising their hand and saying, “Hey, what about us?”
Ahead of the House Financial Services Subcommittee’s September 18 hearing on community bank capital access, DCUC sent over their homework early. Their message? If you’re serious about getting more capital flowing to Main Street businesses and underserved communities, you can’t keep credit unions on the sidelines.
“Regulatory relief alone will not solve the access problem if credit unions remain legally prohibited from serving communities that need financial services,” says Jason Stverak, DCUC’s Chief Advocacy Officer. Translation: cutting red tape is great, but not if the door stays legally locked.
What DCUC Actually Wants
First up on their wish list is the Veterans Member Business Loan Act (H.R. 507 and S. 110). This legislation would let credit unions work with more veteran-owned businesses seeking financing. The kicker? All the usual safety requirements—underwriting standards, supervision, capital requirements—would stay in place. Nobody’s asking to throw caution to the wind here.
DCUC is also pushing for updated field-of-membership rules. Think of it as expanding credit unions’ ability to serve underserved communities, but with proper oversight from the NCUA and a solid service plan. You know, responsible expansion.
“Main Street businesses, veteran entrepreneurs and underserved communities benefit when responsible financial institutions have the ability to compete and serve them,” explains Anthony Hernandez, DCUC President and CEO (and retired Air Force Colonel, because apparently overachieving is a requirement for the job).
Different Charters, Different Paths—But Same Goal
Hernandez makes a smart point: Congress doesn’t need to treat community banks and credit unions identically. They’re different animals with different charters. But both need clear legislative paths to actually serve their communities effectively. It’s not about special treatment—it’s about removing the barriers that keep financial services away from people who need them.
DCUC’s letter also flagged several other issues worth congressional attention, including how cooperative charters get formed and capitalized, permanent modernization of the Central Liquidity Facility (that’s basically emergency funding access), clearer rules for credit union service organizations and fintech partnerships, and more predictable application and merger processes.
The Fine Print They Actually Support
On the positive side, DCUC gave props to H.R. 6955 for provisions that offer real relief to credit unions. We’re talking regulatory tailoring, examination reforms, indexed thresholds that adjust over time, and better regulatory review processes—all the stuff that makes operating a financial institution less of a bureaucratic nightmare.
They’re particularly keen on preserving Section 303, which lets qualifying credit unions with $6 billion or less in assets alternate between full-scope and limited-scope examinations. If you’re well-managed and well-capitalized, you don’t need someone looking over your shoulder quite as intensely every single time.
“We are prepared to work with Congress and regulators on technically sound, bipartisan solutions that expand financial access while maintaining strong supervision and preserving the member-owned credit union model,” Stverak adds. In other words: we’re ready to play ball, but let’s make sure everyone can actually get in the game.
The bottom line? When lawmakers talk about expanding capital access, credit unions want to make sure the conversation includes practical solutions for their specific challenges—not just regulatory relief that leaves the fundamental barriers in place.