Veterans Member Business Loan Act
The Veterans Member Business Loan Act would change the way “member business loans” (MBLs) are defined under the Federal Credit Union Act. Specifically, it would exclude extensions of credit that are made to veterans from counting toward the definition of an MBL. In practical terms, loans to veterans would not be included in the pool of loans used to determine whether a credit union has reached the MBL cap. The bill also ties the term “veteran” to the standard federal definition in 38 U.S.C. §101. The change would take effect 180 days after enactment. The measure is introduced in the Senate by Sen. Sullivan (with Sen. Hirono) and is labeled as a short, targeted change aimed at increasing the ability of credit unions to lend to veteran borrowers without those veteran loans impacting the credit union’s MBL limits.
Key Points
- 1Excludes veteran-targeted extensions of credit from the definition of a member business loan for federal credit unions.
- 2Defines “veteran” using the standard federal definition found in 38 U.S.C. §101.
- 3Amends Section 107A(c) of the Federal Credit Union Act to effect the exclusion and related clarifications.
- 4Effective date set at 180 days after enactment.
- 5Introduced in the Senate by Sen. Sullivan (for himself and Sen. Hirono).