Veterans Member Business Loan Act
- Bill Number
- H.R. 507
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-01-16: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-09T08:05:50Z
AI-Generated Summary
Purpose
The Veterans Member Business Loan Act (H.R. 507) aims to support veteran-owned businesses by modifying rules that limit how much credit unions can lend for business purposes. It excludes loans to veterans from counting toward these limits, making it easier for credit unions to provide financing to veterans starting or expanding businesses.
Key Provisions
- Amendment to Definition: Updates Section 107A(c) of the Federal Credit Union Act (12 U.S.C. 1757a(c)) to add a new exception in the definition of a "member business loan." Specifically, it excludes any extension of credit (loan) made to a veteran.
- Definition of Veteran: Defines "veteran" using the same meaning as in Section 101 of Title 38, United States Code, which generally refers to individuals who served in the U.S. military and were discharged under conditions other than dishonorable.
- Effective Date: The changes take effect 6 months after the bill is enacted into law, allowing time for credit unions and regulators to adjust.
Significant Changes to Existing Law
- Expansion of Exceptions: Previously, member business loans (loans to credit union members for business use) were subject to aggregate limits (generally 12.25% of a credit union's net worth) with specific exceptions for certain loans, like those to nonprofits or for real estate. This bill adds loans to veterans as a new exception, removing them from these limits entirely.
- No Other Alterations: The bill does not change the overall cap on member business loans or other regulatory requirements; it only carves out this veteran-specific exclusion.
Potential Impacts
- On Citizens: Veterans may gain easier access to affordable business loans from credit unions, potentially boosting veteran entrepreneurship and small business ownership without the previous regulatory hurdles.
- On Government Agencies: The National Credit Union Administration (NCUA), which oversees credit unions, will need to update its guidelines and monitoring processes to implement the exclusion, possibly reducing administrative burdens for loans to veterans but requiring clear tracking to ensure compliance.
- On International Relations: No direct impacts, as the bill focuses solely on domestic financial regulations for U.S. credit unions and veterans.
Main Stakeholders Affected
- Veterans: Primary beneficiaries, as they can more readily obtain business financing.
- Credit Unions: Gain flexibility to lend more to veteran members without hitting loan limits, potentially increasing their support for community-based lending.
- Regulators (e.g., NCUA): Must enforce the new exception, which could streamline oversight for these specific loans.
- Small Business Community: Indirectly benefits through increased lending opportunities for veteran entrepreneurs.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The change is straightforward and aligns with existing federal support for veterans (e.g., via the Department of Veterans Affairs). It does not alter broader banking laws but could lead to future NCUA rulemaking to clarify implementation.
- Constitutional Implications: None apparent; the bill respects federal authority over financial regulation and does not infringe on states' rights or individual liberties.
- Political Implications: Introduced with bipartisan support (from both Democratic and Republican members), reflecting broad agreement on aiding veterans. If passed, it could set a precedent for targeted exceptions in financial regulations to promote economic opportunities for specific groups.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Gonzalez, Vicente [D-TX-34]
Cosponsors (68)
Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Costa, Jim [D-CA-21], Rep. Tokuda, Jill N. [D-HI-2], Rep. Ciscomani, Juan [R-AZ-6], Rep. Brownley, Julia [D-CA-26], Rep. Golden, Jared F. [D-ME-2], Rep. Cherfilus-McCormick, Sheila [D-FL-20], Rep. Connolly, Gerald E. [D-VA-11], Rep. Biggs, Andy [R-AZ-5], Rep. Valadao, David G. [R-CA-22], Rep. Cuellar, Henry [D-TX-28], Rep. Titus, Dina [D-NV-1], Rep. Bonamici, Suzanne [D-OR-1], Rep. Lynch, Stephen F. [D-MA-8], Rep. Carson, André [D-IN-7], Rep. Rogers, Harold [R-KY-5], Rep. Cole, Tom [R-OK-4], Rep. Gottheimer, Josh [D-NJ-5], Rep. Ryan, Patrick [D-NY-18], Rep. Rutherford, John H. [R-FL-5], Rep. Crane, Elijah [R-AZ-2], Rep. Horsford, Steven [D-NV-4], Rep. Simpson, Michael K. [R-ID-2], Rep. Malliotakis, Nicole [R-NY-11], Rep. Mills, Cory [R-FL-7], Rep. Conaway, Herbert [D-NJ-3], Rep. Owens, Burgess [R-UT-4], Rep. McGovern, James P. [D-MA-2], Rep. Neguse, Joe [D-CO-2], Rep. Fields, Cleo [D-LA-6], Rep. Thanedar, Shri [D-MI-13], Rep. Evans, Gabe [R-CO-8], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Begich, Nicholas J. [R-AK-At Large], Rep. Salinas, Andrea [D-OR-6], Rep. Sherman, Brad [D-CA-32], Rep. Bergman, Jack [R-MI-1], Rep. Sewell, Terri A. [D-AL-7], Rep. Soto, Darren [D-FL-9], Rep. Correa, J. Luis [D-CA-46], Rep. Lieu, Ted [D-CA-36], Rep. Harder, Josh [D-CA-9], Rep. Houlahan, Chrissy [D-PA-6], Rep. Magaziner, Seth [D-RI-2], Rep. Kean, Thomas H. [R-NJ-7], Rep. Scott, David [D-GA-13], Rep. Langworthy, Nicholas A. [R-NY-23], Rep. Whitesides, George [D-CA-27], Rep. Edwards, Chuck [R-NC-11], Rep. Subramanyam, Suhas [D-VA-10] and 18 more
Recent Actions
- 2025-01-16: Referred to the House Committee on Financial Services.
- 2025-01-16: Introduced in House
- 2025-01-16: Introduced in House
Bill Versions
- Veterans Member Business Loan Act — issued 2025-01-16 — PDF (2 pages)