Defense Credit Union Council Sought Business Loan Act

The group requested that lawmakers include the Veterans Member Business Loan Act in the upcoming defense authorization bill.

Updated on Oct. 14, 2026 in Military Jobs

Isometric editorial illustration of a heavy steel beam and brass compass, representing financial policy structure and veteran business lending regulation. — The Defense Credit Union Council has urged Congressional leaders to include the Veterans Member Business Loan Act in the upcoming defense authorization bill. AI Illustration. Upload story photo >

Live Poll

Should Congress exempt veteran-owned business loans from existing credit union lending caps?

The Defense Credit Union Council sent a formal letter to Congressional leaders requesting the inclusion of the Veterans Member Business Loan Act in the Fiscal Year 2027 National Defense Authorization Act. The proposal aims to remove veteran-related credit extensions from current statutory business lending caps.

Why it matters

The Council argues that the current 12.25 percent asset cap on credit union business lending prevents veteran entrepreneurs from accessing vital capital. Supporters believe this change would strengthen the defense industrial base, which relies on small businesses for over 70 percent of its operations.

The Veterans Member Business Loan Act is identified as H.R. 507 and S. 110. Small businesses currently represent more than 70 percent of the total defense industrial base.

The players

Defense Credit Union Council

This trade association represents the interests of credit unions that serve the United States Department of Defense personnel and their families.

The details

The proposed legislation would not create new federal lending programs or appropriate new funds, but would instead exclude certain veteran business loans from existing asset-based definitions. Credit unions would still be required to maintain standard practices regarding capital, liquidity, and underwriting under the new framework.

The Defense Credit Union Council sent the formal request to Congressional leaders on October 14, 2026.

Market Landscape

The request follows the standard legislative path of attaching specialized industry initiatives to the must-pass National Defense Authorization Act. This move highlights an effort to navigate strict federal asset caps that currently limit capital flow within the credit union sector.

If enacted, the bill could increase the availability of business loans for veteran entrepreneurs who currently face hurdles due to asset-based lending restrictions. Small business owners in the defense supply chain may gain more accessible financing options without direct changes to existing interest rates.

The takeaway

Advocates argue that adjusting lending caps for veteran-owned businesses could bolster the broader defense industry by improving entrepreneur access to capital. These changes are intended to streamline credit availability while maintaining necessary safety and capital standards for credit unions.