WASHINGTON—Sens. Dan Sullivan (R-AK) and Mazie Hirono (D-HI) have introduced a bill to exempt loans made to veteran-owned businesses from a credit union’s member business lending cap, the Veterans Member Business Loan Act (S. 2834).
“A recognition of the credit union difference, this bipartisan bill will make it easier for America’s veterans to access credit and invest in their future and their communities,” said CUNA President/CEO Jim Nussle in a statement. “We thank Sens. Sullivan and Hirono for their leadership on this issue and look forward to engaging with lawmakers to advance this legislation and aid credit unions in their efforts to uplift the financial prosperity of veterans who have given so much in the service of our country.”
NAFCU President/CEO Dan Berger added, “NAFCU has long led the fight for relief for credit unions from the arbitrary member business lending cap, and we thank Senators Dan Sullivan and Mazie Hirono for introducing this important NAFCU-sought legislation. This bipartisan bill will improve veterans' access to necessary capital by removing statutory barriers that hinder credit unions' ability to meet the financial needs of our nation's veterans.”
Defense Credit Union Council CEO Anthony Hernandez added in comments to CUToday.info, "This is great news as DCUC has been engaged on this issue via our Military Advocacy Committee. A recent study by the New York Fed and Small Business Administration showed that more veterans are applying for business loans than ever before. Yet, veterans are being rejected at greater rates than the rest of the population due to shorter credit histories as a result of moving every two to three years, and the fact that commercial banks do not make business loans under $100K. This is where credit unions can make a difference and further develop commerce in their communities."
Support From Hawaii, Alaska Leagues
Leadership at the Hawaii and Alaska leagues also expressed their support of the bill.
“U.S. Senator Mazie Hirono has been a long-time credit union member herself, as well as a strong supporter of credit unions and the role they play in their members’ lives,” said Dennis Tanimoto, president of the Hawaii Credit Union League. “This bill helps to ensure veterans’ access to affordable loans and other services from nonprofit financial cooperatives known as credit unions.”
Chad Bostick, governmental affairs chair at the Alaska Credit Union League, also thanked the senators for the bill.
“Alaskan credit unions have a long history of serving Alaskan service members and veterans. It is an honor to work with the credit unions and Senator Sullivan to build upon that long history by increasing access to credit for active duty and veteran members of Alaskan credit unions,” said Chad Bostick, governmental affairs chair at the Alaska Credit Union League. “Many thanks to the hard work by Senator Sullivan and his team. The Alaska Credit Union League is very pleased to see this moving forward and we look forward to working with Senator Sullivan and his team on the next steps with this bill.”