DCUC Urges Congress to Enact Credit Union Reforms Before Year End
By DCUC Staff —
Federal Reserve data reinforces Election Day appeal for veteran lending, loan maturity and liquidity reforms.
WASHINGTON, DC — On Election Day, the Defense Credit Union Council (DCUC) is calling on congressional leadership to complete the unfinished work of the 119th Congress by enacting three bipartisan credit union priorities through the Fiscal Year 2027 National Defense Authorization Act (NDAA) or another must-pass legislative vehicle.
In a letter addressed to House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune, and Senate Minority Leader Charles E. Schumer, DCUC Chief Advocacy Officer Jason Stverak urges action on the Veterans Member Business Loan Act, federal credit union loan-maturity modernization, and permanent Central Liquidity Facility (CLF) reform before this Congress ends. “Military families and veterans need financial partners they can count on long after the campaign signs come down,” said Anthony Hernandez, DCUC President and CEO. “These reforms would help credit unions provide responsible financing and prepare for disruptions that can put families under financial strain. Congress has an opportunity to strengthen the financial security of those who serve, and we urge lawmakers to complete this work.” “The election does not end this Congress’s responsibility to deliver for veterans and military families,” said Jason Stverak, DCUC Chief Advocacy Officer. “The latest data show veterans still face real obstacles to capital and often turn to personal funds to keep their businesses moving. Congress should use the remaining weeks to expand responsible lending, modernize loan terms, and strengthen emergency liquidity access.” The letter makes the case for three targeted reforms: Expand access to business capital for veterans. The Veterans Member Business Loan Act (H.R. 507 / S. 110) would exclude qualifying loans made to veterans from the statutory member business loan definition used to apply the aggregate lending cap. At institutions subject to the cap, that ceiling can prevent an otherwise sound loan even when the credit union is willing to lend. The legislation creates no new federal lending program or government guarantee and preserves responsibility for prudent underwriting. Modernize federal credit union loan maturities. The Expanding Access to Lending Options Act (H.R. 4167 / S. 3616) would increase the general maturity limit from 15 to 20 years, permit longer terms through National Credit Union Administration (NCUA) regulation, and remove the principal-residence restriction from a specified residential mortgage provision. Greater flexibility would help credit unions match repayment schedules to appropriate financing needs, including those of servicemembers planning for a future home while stationed elsewhere. Make emergency liquidity access more practical and permanent. The Padilla–Cramer NCUA Central Liquidity Facility Enhancements Act (S. 3575) would allow corporate credit unions acting as agents to purchase required CLF capital stock for a subset of their member credit unions. Permanent flexibility would make participation more workable, especially for smaller institutions, and improve preparedness for financial disruptions. The letter cites the Federal Reserve’s 2026 Chartbook on Veteran-owned Firms, based on the 2025 Small Business Credit Survey. Among majority-veteran-owned small employer firms, 38 percent reported credit-availability challenges, compared with 28 percent of firms with no veteran ownership. Among firms facing financial challenges, 62 percent of majority-veteran-owned firms used personal funds, compared with 53 percent of firms with no veteran ownership. Among majority-veteran-owned applicants for loans, lines of credit, or merchant cash advances, 17 percent were denied and 30 percent were partially approved. A September 2025 Government Accountability Office report identifies additional barriers, including difficulty establishing credit and business relationships after relocation, limited business networks, and lenders’ unfamiliarity with skills gained during military service. DCUC argues that lifting the aggregate lending barrier for qualifying veteran loans would help credit unions finance businesses, including veteran-owned suppliers that need working capital and equipment to perform defense-related contracts. “Veterans bring experience, discipline, and a commitment to service into civilian business ownership,” Hernandez said. “They deserve a fair opportunity to obtain financing from a credit union that understands their needs. These reforms would give credit unions more flexibility to serve qualified borrowers while preserving sound underwriting and the safeguards that protect members.” DCUC’s request builds on its joint advocacy with The American Legion, its June 24 CLF letter, and its September 8 request for an NDAA financial services section. The Council urges coordination among congressional leadership and the financial services and armed services committees to resolve technical differences and secure enactment. “If these provisions cannot move in the final NDAA, Congress should carry them in another must-pass package,” Stverak said. “With Veterans Day approaching, lawmakers have an opportunity to honor service through action. DCUC is ready to work with their offices to finish the job.”
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Originally reported by DCUC.