CUNA backed a bipartisan bill introduced Wednesday that would exempt loans made to veterans from counting against a credit union’s member business lending cap. The Veterans Member Business Loan Act was introduced by Reps. Vicente Gonzalez (D-Texas), Tulsi Gabbard (D-Hawaii), Paul Cook (R-Calif.) and Don Young (R-Alaska.).
“This bipartisan legislation will make it easier for America’s veterans to access capital and invest in themselves and their communities. Credit unions proudly serve tens of millions of active duty and veteran members and fully support veteran entrepreneurs and their families," said CUNA President/CEO Jim Nussle. "We thank Reps. Gonzalez, Gabbard, Cook and Young for their leadership on this issue, and look forward to engaging with lawmakers as this bill moves through the legislative process.”
CUNA sent a letter of support to Gonzalez, Gabbard, Cook and Young Wednesday.
Credit union member business lending is limited by statute to 12.25% of a credit union’s assets, or 1.75 times the credit union’s net worth, whichever is lesser.
Under the legislation, extensions of credit made to veterans who served on active duty and were discharged or released under conditions other than dishonorable would be excluded from the definition of a member business loan.