The Defense Credit Union Council (DCUC) has sent letters to the House Financial Services Subcommittee and the Senate Committee on Small Business & Entrepreneurship ahead of key hearings this week.
The DCUC has called on the Senate Committee on Small Business & Entrepreneurship to support the Veterans Member Business Loan Act (VMBLA), bipartisan legislation that would exempt loans to veteran-owned businesses from the federal credit union’s 12.25% member business lending cap.
“Veteran entrepreneurs operate 1.76 million businesses employing over 5 million Americans and generating nearly $1 trillion in annual revenue,” says Jason Stverak, DCUC Chief Advocacy Officer. “Despite this, too many still lack access to affordable capital due to arbitrary lending limits. The VMBLA removes that barrier at no cost to taxpayers and allows credit unions to provide additional capital to veterans and fuel job creation on Main Street while strengthening America’s manufacturing base.”
Additionally, ahead of the House Financial Services Subcommittee’s May 15 hearing, “Merger Mayhem: Concentration and Competition in the Banking Sector,” the Defense Credit Union Council (DCUC) requested policymakers protect voluntary mergers between community banks and credit unions as a means to preserve local financial services and promote financial inclusion.
“As financial institutions continue to consolidate, many communities are left with fewer banking options,” says Jason Stverak, DCUC Chief Advocacy Officer. “Credit unions have increasingly stepped in to maintain local access to financial services—particularly in rural, underserved, and military communities, by acquiring small banks seeking partners aligned with community values.”
DCUC shared that these mergers are initiated by willing sellers, approved by bank boards, and conducted under full regulatory oversight. Unlike hostile takeovers, these transactions are often the only alternative to branch closures, helping retain local jobs and economic activity.
DCUC’s letter outlined several key benefits of credit union acquisitions of banks, including preserving local access (more than 70% of credit union branches are in low- and moderate- income areas), rural and military outreach, and community investment (mergers protect jobs, sustain tax revenues, and strengthen financial inclusion).
The DCUC also has provided its comments in a letter to Chairman Davidson and Ranking Member Cleaver of the House Financial Services Subcommittee on Housing and Insurance ahead of their May 15 hearing on “Affordable Housing Challenges.” DCUC commends the Subcommittee’s focus on housing stability as a critical component of military readiness and financial resilience.
In yesterday’s letter, DCUC highlighted the unique hurdles facing military households—frequent relocations, volatile local markets, and credit disruptions due to deployments—and detailed how defense credit unions are meeting these needs.
Through tailored VA-loan programs, first-time buyer counseling, low- or no-down-payment mortgages, emergency relief funds, and partnerships with community organizations, credit unions help ensure that service members can secure and sustain affordable homes.
“[C]redit unions make sure that servicemembers, veterans, and their families have access to fair, affordable financial services even in communities that might otherwise be “banking deserts,” said Jason Stverak, DCUC President/CEO. “The value of this presence cannot be overstated…According to a 2024 Blue Star Families survey, over 80% of military families experience financial stress. Having a trustworthy, community-based financial partner – like an on-base credit union that understands military life – is crucial to alleviating that stress. Such credit unions offer safe transaction accounts, reasonable mortgage and auto loans, and financial education, which together build the financial foundation that enables a family to afford housing. By keeping predatory lenders at bay and providing affordable credit, credit unions help military families avoid the debt traps that can lead to eviction, homelessness, or bankruptcy. In other words, credit unions strengthen financial resilience, which in turn supports housing stability.”
To expand their impact, DCUC recommended that Congress:
- Raise or exempt the Member Business Lending cap for residential and veteran-owned loans, unlocking more credit for housing and small businesses;
- Modernize the VA Home Loan program, streamlining appraisals, underwriting, and commission rules to improve market acceptance;
- Adjust Basic Allowance for Housing (BAH) to reflect current market rates;
- Broaden credit unions’ participation in federal housing programs (FHA, USDA, CDFI,Ginnie Mae); and
- Streamline regulatory burdens on credit union mortgage lending to enhance capacity.
“Stable housing supports both financial and mission readiness,” says Anthony Hernandez, DCUC President/CEO. “With thoughtful policy reforms, credit unions can do even more to serve those who serve our nation.”