“Passing this bill is about keeping our promise to veterans, honoring their service, and empowering them to succeed as business owners and community leaders,” says the Defense Credit Union Council (DCUC) and The American Legion.
On Wednesday, DCUC and The American Legion sent a joint letter to congressional leaders to swiftly advance H.R. 507 and S. 110, the Veterans Member Business Loan Act, which would expand access to capital for veteran-owned small businesses at no cost to taxpayers.
The letter, sent to Speaker Mike Johnson, Senate Majority Leader John Thune, Senate Minority Leader Chuck Schumer, and House Minority Leader Hakeem Jeffries, stressed how too many veterans face unnecessary barriers when seeking financing to start or grow businesses after their military service. While veteran-owned businesses already employ more than 5.3 million Americans and generate nearly $963 billion annually, the share of U.S. businesses owned by veterans has declined sharply in recent years, falling from 11% in 2014 to just over 8% in 2020.
Veterans bring discipline, leadership, and proven skills to entrepreneurship, yet they are consistently underserved by traditional lenders. “This decline signals that thousands of capable veterans who could be creating jobs and strengthening our communities have instead been left on the sidelines. We must not allow those who protected our freedoms to now be denied the opportunity to pursue their own American Dream,” the organizations wrote.
Studies show veteran entrepreneurs are approved for business loans at lower rates than non-veterans and are more likely to rely on personal savings due to financing gaps. Seventy-five percent of veterans cite access to capital as a top challenge when starting or expanding a business.
DCUC and The American Legion stressed that credit unions, particularly those serving military communities, are uniquely positioned to help close this gap. As not-for-profit, member-owned institutions with deep ties to service members and veterans, credit unions are eager to expand responsible lending to veteran entrepreneurs. However, an outdated federal cap on credit union member business lending, set at 12.25% of assets, often forces credit unions to turn away qualified veteran borrowers.
“This structural barrier is choking off much-needed credit on Main Street for veteran entrepreneurs at the very moment we need all engines firing to boost our economy,” said DCUC and the American Legion. “No veteran should be told ‘we’ve hit our limit’ because of an arbitrary rule enacted decades ago.”
The Veterans Member Business Loan Act would remove this barrier by exempting loans to veteran-owned businesses from the lending cap, while maintaining all safety and soundness requirements. Similar exemptions already exist for residential mortgage and agricultural loans.
“The Veterans Member Business Loan Act doesn’t ask for any new federal program or spending; it simply removes a regulatory hurdle and lets credit unions use their own capital to do more of what they already do best: make safe, responsible loans in their communities. It is a rare opportunity to enact a policy change that is straightforward, bipartisan, and profoundly impactful without burdening the federal budget,” the organizations stated.
The legislation enjoys strong bipartisan support. In the Senate, S. 110 is led by Senators Mazie Hirono (D-HI) and Dan Sullivan (R-AK), while H.R. 507 is sponsored in the House by Representatives Vicente Gonzalez (D-TX) and Brian Fitzpatrick (R-PA), with dozens of bipartisan co-sponsors.
DCUC and The American Legion called on congressional leadership to bring the bills to the floor without delay, emphasizing that every day of inaction represents lost opportunities for veterans to create jobs, strengthen communities, and continue serving the nation in civilian life.