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Sens. Dan Sullivan, R-Alaska, and Mazie Hirono, D-Hawaii, reintroduced a NAFCU-backed bill on Tuesday to improve veterans’ access to necessary capital by removing statutory barriers under the member business loan cap that hinder credit unions’ ability to meet the financial needs of our nation’s veterans.

The bill covers business loans to any veteran who served on active duty and was discharged or released under conditions other than dishonorable and would have those loans not count against the credit union member business lending cap. NAFCU advocates for a healthy regulatory environment that neither stifles innovation nor discourages credit unions from providing consumers and small businesses with access to credit. This bill supports that initiative by enabling credit unions to provide more consumers and small businesses with access to credit.

Of note, Sullivan and Hirono spearheaded efforts on this topic last year.

In addition, Sens. Kevin Cramer, R-N.D., and Alex Padilla, D-Calif., introduced legislation yesterday that would allow enhanced access to the Central Liquidity Facility (CLF) for three years through purchase of CLF capital stock. Both lawmakers steadily advocated for Congress to include CLF enhancements in the FY2023 National Defense Authorization Act (NDAA), but was not ultimately included. 

Of note, NCUA Chairman Todd Harper in November testified before the House and Senate highlighting the agency’s efforts to maintain the safety and soundness of the credit union industry. During his testimony, Harper reiterated to lawmakers the importance of CLF flexibility to ensure credit unions, especially smaller institutions, have access to resources for future emergencies. 

Stay tuned to NAFCU Today for updates on this and other key pieces of credit union legislation.