WASHINGTON — The Defense Credit Union Council is again urging Congress to ease restrictions on credit union lending to veterans and agricultural businesses, while America’s Credit Unions has sent a letter ahead of mark-up this week in the House on several pieces of legislation, incuding one bill it says provides “vital, credit union-supported reforms to the CFPB.”
In a Sept. 14 letter to House Agriculture Committee Chairman Glenn “GT” Thompson and ranking member Angie Craig, DCUC called for passage of the Veterans Member Business Loan Act, targeted relief from credit union member business lending restrictions for agricultural loans and greater credit union participation in federal rural financing programs.
The letter was submitted ahead of the committee’s Sept. 16 hearing, “Increasing Demand and Opportunities for Homegrown Products Here and Abroad.”
DCUC said opening new domestic and international markets will have limited benefits if farmers and small businesses cannot obtain the capital necessary to increase production and serve those customers.
“A new customer at home or abroad cannot translate into growth if a farmer cannot finance equipment, a processor cannot expand production, or a small business cannot obtain the working capital necessary to fill an order,” DCUC said.
Veteran Lending Bill
Among DCUC’s top priorities is passage of the bipartisan Veterans Member Business Loan Act, H.R. 507 and S. 110.
The legislation would exclude qualifying business loans made to veterans from the calculation used to determine a credit union’s statutory member business lending limit.
For federally insured credit unions subject to the restriction, aggregate member business lending generally is limited to the lesser of 12.25% of assets or 1.75 times actual net worth, subject to exclusions and exemptions, DCUC said.
The trade group argued the restriction can prevent otherwise financially capable credit unions from making additional creditworthy business loans after reaching the portfolio limit.
DCUC said the issue has particular relevance for agriculture because of the number of veterans involved in farming.
The USDA’s 2022 Census of Agriculture identified 305,753 producers who had served or were serving in the U.S. military, according to DCUC. Farms with at least one producer with military service represented 15% of U.S. farms and generated approximately $49 billion in agricultural sales.
DCUC said a veteran seeking financing to expand a family farm, buy livestock, purchase processing equipment or start a specialty food business should be evaluated based on the operation’s viability, repayment capacity and prudent underwriting rather than whether the credit union has reached an aggregate lending limit.
The organization urged members of the Agriculture Committee to cosponsor H.R. 507 and work with the House Financial Services Committee to advance the legislation.
Seeks Agricultural Lending Relief
DCUC also called for targeted relief from member business lending restrictions for qualifying agricultural loans, particularly financing for small and beginning farmers and ranchers.
The organization said credit unions already provide agricultural equipment, livestock, operating and real estate loans in rural communities.
Those loans can finance expenses ranging from seed, feed and fuel to equipment and real estate. Financing also is needed beyond the farm itself, DCUC said, including for processors, food businesses, refrigerated storage facilities and distributors.
Expanding markets for agricultural products without ensuring those businesses have access to upfront financing could leave smaller companies unable to take advantage of new opportunities, according to the group.
DCUC said any easing of lending restrictions should maintain prudent underwriting, risk controls and regulatory supervision.
“The objective is not lending without limits; it is ensuring that well-managed credit unions can respond to legitimate agricultural credit needs,” DCUC said.
The organization also urged lawmakers to consider the broader rural economy, noting farms depend on suppliers, repair businesses, transportation providers, processors and other local companies.
Calls for Greater Role in USDA Programs
DCUC also wants Congress and the USDA to ensure credit unions can meaningfully participate in federal agricultural and rural development financing programs.
The USDA Farm Service Agency’s guaranteed loan programs support eligible farm ownership and operating loans, while the department’s Business and Industry Guaranteed Loan Program recognizes credit unions as eligible lenders for qualifying rural business financing.
DCUC said simply making credit unions eligible is not enough.
The group called for clearer lender guidance, practical training, predictable application reviews, reasonable fees and less duplicative paperwork to make it easier for qualified credit unions to participate.
DCUC also said future rural lending partnerships and federal programs should include qualified credit unions alongside banks and other community lenders.
“Congress should avoid bank-only preferences that unnecessarily overlook credit unions’ ability to serve rural borrowers,” the organization said.
Additional Recommendation
DCUC further recommended connecting USDA veteran and beginning-farmer training programs with defense credit unions and other community lenders so participants can combine agricultural training, financial counseling and business planning with access to financing.
Chief Advocacy Officer Jason Stverak, who signed the letter, said the organization wants Congress to recognize credit unions as partners in efforts to expand markets for American agricultural products.
DCUC asked the Agriculture Committee to include the letter in the record for the Sept. 16 hearing.
America’s Credit Unions Sends Letter Ahead of Mark-Up, Including on CFPB
Separately, with the House Financial Services Committee set to mark up a series of bills this week, America’s Credit Unions has sent a letter to the committee on legislation it said would “provide much-needed regulatory relief…”
Most significantly, America’s CUs said it supports the CFPB Reform Act of 2026 (H.R. 10184), which would make “vital, credit union-supported reforms to the CFPB.” ACU said those reforms include:
- Placing it under the appropriations process;
- Adding further cost-benefit analysis requirements for the rulemaking process;
- Establishing objective standards for “abusive” under unfair, deceptive, or abusive acts or practices (UDAAP) authority;
- Providing a clear statutory framework encouraging federally insured credit unions to offer safe, affordable small-dollar credit products;
- Requiring federal financial regulatory agencies to state on the first page of guidance documents that the guidance does not have the force and effect of law;
- Increasing the asset threshold size for supervision of large credit unions that are already overseen by the NCUA from $10 billion to $30 billion and index it for future growth;
- Recognizing that prudential regulators are often best positioned to oversee consumer compliance within insured depository institutions;
- Strengthening cooperation and accountability among financial regulators;
- Indexing of asset-based regulatory thresholds;
- Bolstering the bureau’s consumer complaint database consumer verification and attestation requirements; and
- Requiring the CFPB to explain how proposed modifications to small business lending data advance privacy interests.
America’s Credit Unions also encourages the committee “to craft legislation that creates a five-person, bipartisan commission to lead the CFPB instead of a single director.”
Other Legislation With CU Support
Other bills the committee will mark up that are supported by credit unions, according to America’s Credit Unions, include:
- Civil Investigative Demand (CID) Reform Act of 2025 (H.R. 1653), which would require the CFPB to explicitly reference any alleged violations in the CID;
- Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act (H.R. 4936), to bring regulators, law enforcement, industry, and consumer representatives together to study scams and how to combat them; and
- American Lending Fairness Act of 2026 (H.R. 7866), which would clarify the opt-out provision in the Depository Institutions Deregulation and Monetary Control Act (DIDMCA) to preserve parity for state and federally chartered credit unions operating within the same state.
