DCUC Tells Congress: Capital Access Must Include Credit Unions
By CU Today Staff —
WASHINGTON—The Defense Credit Union Council is urging House lawmakers to ensure credit unions are included in efforts to expand access to capital for Main Street businesses and communities ahead of a Sept. 18 House Financial Services subcommittee hearing on the Main Street Capital Access Act.
“Regulatory relief alone will not solve the access problem if credit unions remain legally prohibited from serving communities that need financial services,” said Jason Stverak, DCUC chief advocacy officer in a letter to the HFSC outlining CU priorities.
In its comments, DCUC highlighted that the Veterans Member Business Loan Act, H.R. 507 and S. 110, would allow credit unions to consider additional qualified veteran-owned businesses for financing while maintaining underwriting, supervision, capital, and safety-and-soundness requirements.
DCUC stated it also supports modernization of field-of-membership rules to provide qualified federal credit unions with greater opportunity to seek approval to serve underserved communities, subject to NCUA review and a credible service plan. Stverak noted on behalf of DCUC that lending capacity and membership eligibility are complementary components of financial access.
“Main Street businesses, veteran entrepreneurs and underserved communities benefit when responsible financial institutions have the ability to compete and serve them,” said Anthony Hernandez, DCUC president/CEO, ret. U.S. Air Force colonel. “Congress can advance meaningful community-bank reforms while also addressing the credit union-specific barriers that limit access to capital. These reforms do not require identical treatment of different charters; they require a deliberate legislative path for each institution to serve its communities effectively.”
DCUC’s comments also identified additional areas for credit union legislative consideration, including cooperative charter formation and capitalization, permanent Central Liquidity Facility modernization, responsible credit union service organization and fintech authority, and more predictable application and merger processes.
“We support the provisions of H.R. 6955 that provide meaningful relief to credit unions, including regulatory tailoring, examination reforms, indexed thresholds, and regulatory review provisions,” explained Stverak.
DCUC said it further supports preserving Section 303, which provides qualifying, well-managed and well-capitalized insured credit unions with $6 billion or less in assets alternating full-scope and limited-scope examinations and opportunities to combine otherwise separate examinations.
“We are prepared to work with Congress and regulators on technically sound, bipartisan solutions that expand financial access while maintaining strong supervision and preserving the member-owned credit union model," Stverak added.
Originally reported by CU Today.