Bipartisan Senate bill would exempt veteran business loans from cap

February 28, 2023

Sens. Mazie Hirono, D-Hawaii, and Dan Sullivan, R-Alaska, introduced legislation Tuesday to exempt credit union loans made to veteran-owned businesses from the member business lending cap.

“This bipartisan bill would allow credit unions to get additional capital out to meet the needs of veteran business owners,” said CUNA President/CEO Jim Nussle. “Credit unions have a long history of service to servicemembers, and we thank Sens. Hirono and Sullivan for their bipartisan leadership to help credit unions do even more.”

Credit unions are restricted in business lending by current law to 12.25% of their total assets. This bill would amend the Federal Credit Union Act to exclude extensions of credit made to veterans from the MBL definition.

“Alaska is known for being the highest veteran population per capita of all 50 states. These veterans need access to affordable business loans through a robust competitive environment” said Alaska Credit Union League President Dan McCue. “Veteran-owned businesses in every state should be provided equal access to business loans offered by credit unions like those offered by other financial institutions. We thank Senator Sullivan for cosponsoring this bipartisan legislation to ensure credit unions can serve the needs of veteran business owners.”       

“Mahalo to Senator Mazie Hirono for her continued support of this bill giving Hawaii's credit unions greater business lending authority to help veteran entrepreneurs,” said Hawaii Credit Union League President Carol Marx. “Bipartisan legislation demonstrates collaboration with Senator Dan Sullivan to improve the financial well-being for many in Hawaii and across the nation.”