WASHINGTON--The Defense Credit Union Council said it supports the Protecting Access to Credit for Small Businesses Act; the legislation would block the Small Business Administration (SBA) from becoming a direct lender, instead preserving the "essential role of community-based financial institutions" — including credit unions — in delivering small business loans to Main Street America.
DCUC said it views the bill as a vital safeguard for America’s small business lending system and a direct win for military-connected entrepreneurs.
“We are grateful to Senator Tim Scott (R-SC) and his colleagues for standing up for America’s military entrepreneurs,” said Anthony Hernandez, DCUC president/CEO. “This bill ensures that credit unions can continue to provide personalized, community-based lending services to our servicemembers, veterans, and their families. It is a critical step toward halting unnecessary government overreach and preserving trusted private-sector partnerships.”
The legislation responds to concerns over an SBA proposal to expand direct lending authority under its 7(a) loan program — a move widely criticized by industry experts and lawmakers as inefficient and duplicative. By prohibiting the SBA from making loans directly, Senator Scott’s bill protects the long-standing public-private model that has enabled thousands of small businesses to flourish with the help of local credit unions and banks, DCUC said.
“Credit unions serving veteran communities are ready to do more — but their hands are tied by an arbitrary lending cap that doesn’t reflect today’s needs,” said Jason Stverak, DCUC’s chief advocacy officer.
DCUC noted that it has reiterated these concerns in letters to both chambers of Congress, including a recent message to the House Small Business Committee in June 2025. In Senate testimony earlier this year, DCUC stressed the urgent need to modernize SBA lending policies to ensure veterans and military families have equitable access to business capital.