Credit Union Coalition Backs Legislation to Expand Business Lending to Veterans

A national coalition of more than 200 defense- and veteran-focused credit unions is calling on Congress to expand access to business capital for veterans—a core priority for National Invest In Veterans Week® and its focus on long-term economic opportunity for those who served.

In a formal letter to the House Committee on Veterans’ Affairs, the Defense Credit Union Council (DCUC) urged lawmakers to advance H.R. 507, the Veterans Member Business Loan Act, during the June 24, 2025 hearing titled “Empowering Veterans Through Entrepreneurship.” The letter argues that H.R. 507 would remove an outdated cap on certain business loans, allowing credit unions to provide substantially more financing to veteran-owned small businesses.

Under current law, federally chartered credit unions face a 12.25% cap on member business loans as a share of total assets. DCUC notes that this cap can prevent even highly qualified veteran borrowers from receiving loans, despite strong demand among transitioning service members and veteran entrepreneurs.

The letter emphasizes several key points that align with the mission of National Invest In Veterans Week®:

• Veteran entrepreneurs are more likely to seek business funding but are denied at higher rates than non-veterans, often forcing them to rely on personal savings or high-cost lenders.

• Removing the cap for loans to veterans and servicemembers would unlock affordable, mission-driven capital for launching and expanding veteran-owned businesses, without any cost to taxpayers.

• Expanded veteran business lending would support job creation, local economic growth, and community stability, as many veteran business owners prioritize hiring fellow veterans.

• Improved post-service economic opportunity is framed as an investment in military readiness, supporting morale, retention, and a stronger all-volunteer force.

DCUC characterizes H.R. 507 as a “common-sense, bipartisan” measure that simply removes an artificial barrier and allows not-for-profit, mission-driven credit unions to do more for the veteran and military communities they already serve. With more than 30 percent of servicemembers and veterans reportedly relying on credit unions for everyday financial services, the potential impact on veteran-owned small businesses is significant.

For National Invest In Veterans Week®, the DCUC letter underscores a central principle: investing in veterans means structurally increasing access to capital, not just offering symbolic recognition. By modernizing lending rules, Congress can help transform veteran entrepreneurship into a scalable engine for jobs, wealth creation, and long-term economic resilience.

Read the full DCUC letter here:
DCUC Letter to House Veterans’ Affairs — June 24, 2025 (PDF)