DCUC, On Behalf of Credit Unions, Calls for Inclusion of Veteran Member Business Loan Legislation in Final National Defense Bill

By DCUC Staff — October 14, 2026

WASHINGTON, DC – Today, the Defense Credit Union Council (DCUC) has called on Congress to include the bipartisan Veterans Member Business Loan Act (H.R. 507/S. 110) in the Fiscal Year 2027 National Defense Authorization Act (NDAA), connecting greater access to capital for veteran entrepreneurs with the need to strengthen America’s military supply chains.

In its letter, DCUC called on the chairs and ranking members of the House Financial Services, Senate Banking, House Armed Services, and Senate Armed Services Committees to work together to secure the legislation’s inclusion in the final NDAA. “H.R. 507 and S. 110 offer a targeted solution by excluding qualifying extensions of credit made to veterans from the statutory member business loan definition. The legislation creates no new federal lending program, appropriates no new loan funds, and provides no new government guarantee. Credit unions would remain accountable for underwriting, capital, liquidity, and safe lending. We are asking Congress to remove a barrier, not remove responsibility,” DCUC’s letter stated. “A strong military needs a strong industrial base behind it, and veteran-owned small businesses should have every opportunity to help build it,” says Anthony Hernandez, DCUC President/ CEO, Ret. U.S. Air Force Colonel. “We have an opportunity to support veteran entrepreneurs through a policy that helps them buy equipment, hire workers, and compete for the business while also keeping our military supplied and ready.” DCUC’s letter highlights the Small Business Administration’s Smaller War Plants Commission, which focuses on expanding small-business defense production and improving access to capital. SBA reports that small businesses comprise more than 70 percent of the defense industrial base. The commission’s priorities include manufacturing, electronics, batteries, naval shipbuilding, and repair components. “Washington cannot ask veterans to help rebuild America’s defense industrial base while leaving an unnecessary barrier between them and the capital needed to do the job,” says Jason Stverak, DCUC Chief Advocacy Officer. “A contracting opportunity does not buy a milling machine. A statement of support does not cover payroll. Congress needs to connect its support for American production with responsible financing that helps businesses actually produce.” For credit unions subject to the statutory member business lending cap, aggregate member business lending is generally limited to 12.25 percent of assets, with a lower limit possible based on net worth. DCUC argues that the ceiling can block an otherwise sound business loan even when a veteran has a viable business plan and the credit union is prepared to lend.

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Originally reported by DCUC.