The Defense Credit Union Council (DCUC) has sent a letter to House Financial Services Committee Chairman French Hill commending his leadership on the Community Banks Deposit Access Act of 2025 while urging similar reforms for credit unions.
In the letter, Jason Stverak, DCUC’s Chief Advocacy Officer, thanked Chairman Hill’s commitment to modernizing outdated regulations that burden community banks and highlighted the parallel need for reforms that would allow credit unions to better serve American families, small businesses, and veterans.
“Whether it’s a community bank in a small town or a credit union on a military base, we’re all striving to ensure families and small businesses have a safe, affordable place to turn for financial services,” says Stverak. “Credit unions have always been partners in serving areas that big banks often ignore. We reinvest in our neighborhoods and look out for the little guy – and that’s something worth championing together.”
DCUC’s letter outlined three key priorities for Congress to strengthen credit unions’ ability to support local economies:
Modernize the Member Business Lending Cap – Current federal law limits most credit unions’ small business lending to 12.25% of assets. DCUC urged lawmakers to ease or remove this decades-old cap, which prevents credit unions from fully meeting the needs of small businesses, including many veteran- and minority-owned enterprises.
Pass the Veterans Member Business Loan Act – Introduced by Reps. Brian Fitzpatrick and Vicente Gonzalez, this bipartisan bill would exempt loans to veteran-owned small businesses from the credit union lending cap. “This is pro-veteran, pro-small business, and it doesn’t cost taxpayers a dime,” adds Stverak.
Strengthen the Central Liquidity Facility (CLF) – DCUC called on Congress to restore and modernize the CLF, a critical liquidity backstop for smaller credit unions. Pandemic-era improvements that expanded its reach expired in 2021, leaving many credit unions vulnerable in times of crisis. Bipartisan legislation in the Senate would make these enhancements permanent.
“Credit unions aren’t looking for special treatment – we’re looking for equal treatment so we can serve our communities side by side with community banks without one hand tied behind our back,” Stverak says. “When veterans and small businesses succeed, our whole community wins.”
DCUC reaffirmed its commitment to collaboration with community banks and lawmakers, stressing that both types of institutions share the mission of strengthening local economies and ensuring financial access for underserved communities.
Additionally, the DCUC sent a letter to the House Committee on Small Business urging lawmakers to modernize outdated lending laws and strengthen Small Business Administration (SBA) programs to better serve Main Street and veteran-owned businesses.
In the letter, DCUC Chief Advocacy Officer Jason Stverak applauded the Committee’s leadership on expanding access to capital. Stverak also highlighted credit unions’ critical role in supporting small businesses, particularly in military and rural communities where big banks often retreat.
DCUC’s letter provided three key recommendations to Congress:
Pass the Veterans Member Business Loan Act (VMBLA): Bipartisan legislation that would exempt loans to veteran-owned businesses from the federal credit union lending cap, unlocking more capital for veterans at no cost to taxpayers.
Preserve SBA’s public-private lending model: Oppose proposals to expand SBA’s direct lending authority under the 7(a) program, ensuring community lenders remain central to serving entrepreneurs.
Modernize SBA programs: Streamline application processes and reduce red tape to enable more credit unions to participate in SBA lending and expand financing to underserved communities.
DCUC reaffirmed its commitment to working with lawmakers to expand credit access, fuel entrepreneurship, and honor veterans with real opportunities to succeed in business.