House Bill Proposes Exemption for Veteran-Owned Business Loans
House Bill Proposes Exemption for Veteran-Owned Business Loans
In a remarkable move that highlights the importance of veteran-owned businesses in our economy, Reps. Vicente Gonzalez (D-Texas) and Brian Fitzpatrick (R-Pa.) have put forth legislation supported by both CUNA and the League. The proposed bill aims to exempt loans made to veteran-owned businesses from the member business lending cap, offering more financial flexibility and growth opportunities to our nation's veterans.
The introduction of this legislation in the House mirrors a bipartisan Senate companion bill that Senators Mazie Hirono (D-Hawaii) and Dan Sullivan (R-Alaska) put forward earlier in February.
CUNA President/CEO, Jim Nussle, expressed gratitude for the introduction of the bill, stating:
"Credit unions stand willing and able to get needed capital to veteran-owned businesses, and we thank Reps. Gonzalez and Fitzpatrick for working together and introducing this bill in the House. With bipartisan bills addressing this issue now introduced in both chambers, we will continue to engage members of Congress to move this common-sense legislation forward."
Praising Rep. Vicente Gonzalez's consistent support for Texas credit unions, Gili Carter, the executive director of the Texas Credit Union Association, said:
"Rep. Vicente Gonzalez continues to be a great champion for our Texas credit unions and their 11 million members statewide. We applud his efforts to support our veteran-owned businesses from the member business lending cap in his recently filed house companion. As introduced, this is a good bipartisan bill that Cornerstone League will support, and we will strongly advocate for this much-needed legislation."
Currently, credit unions face a cap on member business lending at 12.25% of assets. This bill intends to ease such restrictions, promoting economic growth and fostering entrepreneurship among veterans.
In a parallel move, Gonzalez and Fitzpatrick introduced legislation to offer credit unions added lending flexibility. This includes proposals to elevate the maximum business loan threshold and permit loan maturities extending beyond 15 years.
NaVOBA President, Matthew Pavelek, succinctly encapsulated the significance of this legislation:
"This legislation is a big win for all involved. First, it's bipartisan and we need more legislators reaching across the aisle for important issues. Second, it further reinforces that supporting America's veterans is a truly apolitical issue. Third, and most importantly, it increases veteran business owners' access to the capital they need to start and grow their companies. We enthusiastically applaud Reps. Gonzalez and Fitzpatrick for their leadership in introducing this bill and genuinely hope it becomes law."
This move embodies a holistic effort to prioritize the needs of veteran-owned businesses, ensuring they receive the essential financial support they require. As this bill progresses, it promises a brighter future for the veterans who have served our nation and are now serving our economy.
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