Bill Summary
The "Veterans Member Business Loan Act" is a proposed legislation aimed at amending the Federal Credit Union Act. Its primary purpose is to exclude loans extended to veterans from the definition of a "member business loan."
Specifically, the bill proposes to modify Section 107A(c) of the Federal Credit Union Act. It adds a new clause that explicitly states that loans made to veterans are not categorized as member business loans, thereby allowing credit unions to provide these loans without being subject to the same regulatory restrictions that apply to traditional business loans.
Additionally, the legislation defines "veteran" by referencing the definition found in Section 101 of Title 38 of the United States Code. The amendments would take effect 180 days after the bill is enacted. This legislation seeks to enhance access to credit for veterans, supporting their business endeavors.
Possible Impacts
The "Veterans Member Business Loan Act" introduces amendments to the Federal Credit Union Act to specifically include extensions of credit made to veterans as part of the member business loan definition. Here are three examples of how this legislation could affect people:
1. **Increased Access to Capital for Veteran Entrepreneurs**: By allowing credit unions to extend business loans to veterans without them counting against member business loan limits, more veterans may be able to start or expand their own businesses. This can lead to increased entrepreneurship within the veteran community, potentially resulting in job creation and economic growth.
2. **Improved Financial Support for Transitioning Veterans**: Many veterans face challenges when transitioning to civilian life, including finding stable employment. This legislation could provide them with more accessible financing options to start businesses, offering a viable path to financial independence and stability. As a result, veterans may experience improved economic outcomes and a smoother transition into civilian careers.
3. **Encouragement of Financial Institutions to Support Veterans**: With the legal framework supporting loans specifically for veterans, credit unions and other financial institutions may be incentivized to develop tailored financial products and services for veterans. This could lead to better financial literacy programs, mentorship opportunities, and resources specifically designed to assist veterans in their business ventures, fostering a supportive ecosystem for veteran entrepreneurs.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 110 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 110
To amend the Federal Credit Union Act to exclude extensions of credit
made to veterans from the definition of a member business loan.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 16, 2025
Mr. Sullivan (for himself and Ms. Hirono) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Federal Credit Union Act to exclude extensions of credit
made to veterans from the definition of a member business loan.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veterans Member Business Loan Act''.
SEC. 2. MEMBER BUSINESS LOAN DEFINITION.
(a) In General.--Section 107A(c) of the Federal Credit Union Act
(12 U.S.C. 1757a(c)) is amended--
(1) in paragraph (1)(B)--
(A) in clause (iv), by striking ``or'' at the end;
(B) in clause (v), by striking the period at the
end and inserting ``; or''; and
(C) by adding at the end the following:
``(vi) made to a veteran;'';
(2) in paragraph (2)(B)(ii), by striking ``and'' at the
end;
(3) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(4) the term `veteran' has the meaning given the term in
section 101 of title 38, United States Code.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on the date that is 180 days after the date of enactment of
this Act.
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