The Defense Credit Union Council (DCUC) has announced its strong support for the Protecting Access to Credit for Small Businesses Act. The legislation would block the Small Business Administration (SBA) from becoming a direct lender, instead preserving the essential role of community-based financial institutions — including credit unions — in delivering small business loans to Main Street America.
DCUC, the leading advocate for credit unions serving military and veteran communities, views the bill as a vital safeguard for America’s small business lending system and a direct win for military-connected entrepreneurs.
“We are grateful to Senator Tim Scott and his colleagues for standing up for America’s military entrepreneurs,” said Anthony Hernandez, DCUC President/CEO. “This bill ensures that credit unions can continue to provide personalized, community-based lending services to our servicemembers, veterans, and their families. It is a critical step toward halting unnecessary government overreach and preserving trusted private-sector partnerships.”
Protecting Community-Based Lending in Military Communities
The legislation responds to concerns over an SBA proposal to expand direct lending authority under its 7(a) loan program — a move widely criticized by industry experts and lawmakers as inefficient and duplicative. By prohibiting the SBA from making loans directly, Senator Scott’s bill protects the long-standing public-private model that has enabled thousands of small businesses to flourish with the help of local credit unions and banks.
Supporters argue that community-based lenders are far better equipped to meet the unique needs of small business owners, particularly those in military communities. Unlike federal bureaucracies, credit unions offer relationship-based lending, localized decision-making, and a deep understanding of military borrowers — factors that are essential for supporting veteran-owned startups and growing businesses.
DCUC has long advocated for reforms to SBA programs that would level the playing field for credit unions and remove regulatory barriers to participation. Key among these is the outdated Member Business Lending (MBL) cap, which limits most credit unions’ business lending to just 12.25% of their assets — a restriction that hampers their ability to support growing veteran-owned businesses.
To address this, DCUC has championed the Veterans Member Business Loan Act (VMBLA) — bipartisan legislation that would exempt loans made to veteran-owned businesses from the MBL cap. The Council continues to urge Congress to pass VMBLA alongside broader SBA reforms, enabling credit unions to provide more capital to deserving entrepreneurs without increasing systemic risk.
“Credit unions serving veteran communities are ready to do more — but their hands are tied by an arbitrary lending cap that doesn’t reflect today’s needs,” said Jason Stverak, DCUC’s Chief Advocacy Officer.
DCUC has reiterated these concerns in letters to both chambers of Congress, including a recent message to the House Small Business Committee in June 2025. In Senate testimony earlier this year, DCUC stressed the urgent need to modernize SBA lending policies to ensure veterans and military families have equitable access to business capital.
Empowering Veteran-Owned Businesses to Thrive
Veteran-owned businesses represent a powerful economic engine, generating nearly $1 trillion in annual revenue and employing over 5 million Americans. Yet, these entrepreneurs often face disproportionate barriers to funding due to limited credit histories, frequent relocations, or lack of collateral. Defense credit unions are uniquely positioned to bridge this gap with mission-driven services tailored to the military experience.
By blocking the SBA from competing directly with credit unions, and by modernizing outdated credit union lending restrictions, this legislation ensures military entrepreneurs can access the capital they need — from lenders who understand their circumstances and champion their success.
“Our nation’s heroes have earned every opportunity to thrive in civilian life,” Hernandez added. “By empowering their credit unions to support small business growth — through SBA partnerships and fair lending authority — Congress is investing in the future of military families and local communities.”
DCUC stands ready to work with lawmakers from both parties to advance the Protecting Access to Credit for Small Businesses Act and other critical reforms. DCUC applauds Senator Scott and his colleagues for recognizing the essential role of credit unions in advancing small business success, especially for those who’ve served our country.
DCUC Urges Senate Passage of Bipartisan Bill to Strengthen Credit Union Liquidity Access
The Defense Credit Union Council (DCUC) expressed its strong support for the NCUA Central Liquidity Facility (CLF) Enhancements Act, a bipartisan bill introduced by Senators Alex Padilla (D-CA) and Kevin Cramer (R-ND).
The legislation would permanently restore key provisions that expand credit union access to the National Credit Union Administration’s (NCUA) Central Liquidity Facility, a vital emergency liquidity backstop.
As the leading trade association representing credit unions serving the military and defense community, DCUC shared how this bill is one of its top legislative priorities — with direct implications for the financial stability of credit unions and the economic readiness of military families.
“Making the NCUA central liquidity facility enhancements permanent as a zero-cost, common sense step that strengthens credit unions’ resilience, safeguards financial stability, and ensures military families and underserved communities have continued access to reliable financial support–especially in times of crisis,” said Anthony Hernandez, DCUC President & CEO. “We appreciate both Senator Cramer and Senator Padilla for their bipartisan leadership on this critical issue and look forward to working together to enact the CLF Enhancement Act into law.”
“DCUC has championed this legislation since the early days of the pandemic,” adds Jason Stverak, DCUC Chief Advocacy Officer. “And defense credit unions often serve communities that lack access to other liquidity tools, so this is a large part in why DCUC has stressed that losing this lifeline weakens credit unions’ ability to respond to crises and best serve the communities that rely on them for their financial needs.”
A Proven Liquidity Lifeline – Especially for Military Communities
The CLF, administered by the NCUA, provides emergency lending to credit unions facing unexpected liquidity needs. During the COVID-19 crisis, temporary enhancements passed through the CARES Act enabled corporate credit unions to serve as “agent members” and purchase CLF capital stock on behalf of smaller institutions. This move increased CLF participation from just 283 credit unions to over 4,100 — including many serving on-base and military-connected populations.
Those provisions expired at the end of 2022. As a result, over 3,300 small credit unions — many under $250 million in assets — lost CLF access, and the facility’s total available liquidity shrank by nearly $10 billion.
Key Benefits of the NCUA CLF Enhancements Act
The bill offers a no-cost, proactive solution to reinforce the credit union system before the next crisis strikes. DCUC highlighted several key benefits of the legislation:
- Improved Emergency Liquidity Access – The bill ensures credit unions of all sizes can access critical funds in times of stress, allowing continued support for members without disruption.
- Enhanced Financial System Stability – Broader CLF participation reduces systemic risk and protects the National Credit Union Share Insurance Fund (NCUSIF).
- Support for Small, Community, and Defense Credit Unions – The bill’s provisions restore an important safety net for credit unions on military bases and in underserved communities, where alternative liquidity sources are limited.
- Preparedness Without Cost to Taxpayers – The Congressional Budget Office has confirmed the bill carries no scoreable cost. It strengthens financial defenses with zero taxpayer burden.
A Longstanding Advocacy Priority
DCUC has long urged Congress to make these enhancements permanent. In 2024 and early 2025, DCUC sent letters and testimony to House and Senate committees underscoring how permanent CLF reform would improve readiness, protect small credit unions, and preserve lending in local and military communities. Despite broad bipartisan support and the House’s prior passage of similar measures, permanent reform has not yet been finalized.
“This is a must-pass fix,” Stverak adds. “We’ve seen the CLF work exactly as intended during a crisis. Failing to restore and extend these provisions puts small and defense credit unions — and the members who count on them — at unnecessary risk.”
Stay up to speed with DCUC’s advocacy and representation at dcuc.org/news.