A Navy veteran opens a small machine shop near a base, hoping to land a few defense subcontracts. She needs working capital and a new CNC mill. The local credit union likes her plan, but its business lending is already near the regulatory ceiling. So the answer is no, and she digs into her savings instead.
That scenario is exactly what the Defense Credit Union Council (DCUC) wants Congress to fix. On Election Day, the group sent a letter to House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune, and Senate Minority Leader Charles Schumer. Its request: finish three bipartisan credit union priorities before the 119th Congress wraps up, ideally in the Fiscal Year 2027 National Defense Authorization Act (NDAA) or another must-pass bill. Think of it as a “Shawshank Redemption” situation, with the bills stuck in a long wait for parole.
The three asks
1. Easier business loans for veterans. The Veterans Member Business Loan Act (H.R. 507 / S. 110) would exempt qualifying veteran loans from the statutory member business loan definition used for the aggregate lending cap. Right now, that cap can block a sound loan even when the credit union wants to make it. The bill creates no new federal lending program and no government guarantee, and underwriting responsibility stays with the lender.
2. Longer loan maturities. The Expanding Access to Lending Options Act (H.R. 4167 / S. 3616) would raise the general federal credit union maturity limit from 15 to 20 years. It would also allow longer terms through National Credit Union Administration (NCUA) regulation and drop the principal-residence restriction from a specified residential mortgage provision. In practice, that helps lenders fit repayment schedules to real needs, such as a servicemember buying a future home while stationed somewhere else.
3. A permanent fix for emergency liquidity. The Padilla–Cramer NCUA Central Liquidity Facility Enhancements Act (S. 3575) would let corporate credit unions, acting as agents, buy required Central Liquidity Facility (CLF) capital stock for some of their member credit unions. The CLF is the system’s emergency backstop. Making that flexibility permanent would make participation more workable, especially for smaller institutions, and improve readiness for financial disruptions.
What the data says
The letter leans on the Federal Reserve’s 2026 Chartbook on Veteran-owned Firms, drawn from the 2025 Small Business Credit Survey:
- 38 percent of majority-veteran-owned small employer firms reported credit-availability challenges, versus 28 percent of firms with no veteran ownership.
- Among firms facing financial challenges, 62 percent of majority-veteran-owned firms used personal funds, compared with 53 percent of non-veteran-owned firms.
- Among majority-veteran-owned applicants for loans, lines of credit, or merchant cash advances, 17 percent were denied and 30 percent were partially approved.
A September 2025 Government Accountability Office report adds more obstacles: trouble building credit and business relationships after relocating, limited business networks, and lenders who don’t understand skills earned in the military. DCUC argues that lifting the lending cap for qualifying veteran loans would help credit unions finance these businesses, including veteran-owned suppliers that need equipment and working capital to perform defense-related contracts.
What they’re saying
“Military families and veterans need financial partners they can count on long after the campaign signs come down,” said DCUC President and CEO Anthony Hernandez. He added that the reforms would help credit unions provide responsible financing and prepare for disruptions that strain families.
Jason Stverak, DCUC’s Chief Advocacy Officer, was blunt: “The election does not end this Congress’s responsibility to deliver for veterans and military families.” He noted that veterans still face real obstacles to capital and often reach for personal funds to keep their businesses going.
Hernandez also stressed that veterans bring experience, discipline, and a service mindset to civilian business ownership. They deserve a fair shot at financing from a credit union that understands them, he said, and the reforms would add flexibility while keeping sound underwriting and member safeguards intact.
What comes next
This push builds on DCUC’s joint advocacy with The American Legion, its June 24 CLF letter, and its September 8 request for an NDAA financial services section. The Council wants congressional leadership, plus the financial services and armed services committees, to coordinate and iron out technical differences.
If the final NDAA can’t carry the provisions, Stverak says another must-pass package should. With Veterans Day approaching, he argues, lawmakers can honor service with action, and DCUC says it’s ready to help their offices finish the job.
The remaining weeks of this Congress are short, and the list of bills is not.