WASHINGTON–The Defense Credit Union Council (DCUC) has sent a letter to Congress urging support for S. 539, the Veterans Member Business Loan Act, which would exempt business loans made to veterans from current credit union business lending caps.
“Our member credit unions, along with virtually every credit union in the United States, proudly serve many veterans in their communities,” the DCUC said. “We believe such legislation will make a difference for transitioning and existing veteran members and respectfully ask Congress to support legislation to assist our nation's veterans and their families.
‘Uniquely Positioned’
“Our member credit unions are uniquely positioned and structured to offer this kind of support given branch offices located on the installation and in the community,” DCUC continued. “Plus, with every credit union across the United States having at least one veteran member, the nationwide impact would be far and wide. Our industry sees many of our veterans starting their own businesses as they transition out of the military. As part of our ethos in serving the underserved, we believe we can assist where other lenders refuse.”
The DCUC cited a study by the Federal Reserve Bank of New York and the U.S. Small Business Administration (SBA) that found military veteran business owners applied for more funding, submitted more loan applications per business, and “yet were denied loans at a much higher rate than non-veteran business owners. Thus, it is imperative to keep our veterans borrowing from institutions they trust versus referring them elsewhere.”
‘Great Government Policy’
The DCUC added, “Exempting business loans made to veterans from the artificial member business lending caps is a great government policy. It makes it much easier to extend business credit to America's Veteran-Owned Businesses. Plus it sends a clear signal that our nation recognizes their impact in fostering entrepreneurship successfully building our economy.”
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