In recent weeks, the Defense Credit Union Council (DCUC) made a strong appeal to Congress, calling for immediate action to support veteran-owned businesses by reforming outdated lending restrictions. Their advocacy highlights two major priorities:

• Passing the Veterans Member Business Loan Act (VMBLA)
• Modernizing the Small Business Administration (SBA) 7(a) Loan Program

For organizations like Owners in Honor, which helps veterans acquire small businesses and build wealth through Entrepreneurship Through Acquisition (ETA), this could be a game-changer.

Why Access to Capital Is a Roadblock for Many Veterans

Despite their experience, discipline, and leadership skills, many veterans face systemic barriers when trying to start or acquire a business. One of the biggest hurdles? Access to affordable capital.

Under current law, federal credit unions face member business lending caps that limit the total business lending they can offer to their members—even when those members are veterans with strong business plans.

As DCUC President Anthony Hernandez, a U.S. Air Force veteran himself, recently stated:

“Veterans are twice as likely to pursue entrepreneurship, yet outdated policies prevent them from accessing the capital they need. It’s time for Congress to step up.”
Source: DCUC press release

What the Veterans Member Business Loan Act (VMBLA) Would Do

The proposed VMBLA would exempt loans to veteran-owned businesses from the existing lending cap, which currently restricts most federal credit unions from offering more than 12.25% of their assets in business loans. This cap disproportionately affects veterans—especially those in underserved areas or with limited personal collateral.

Removing this cap would expand access to lower-interest, flexible financing for veterans and allow credit unions to better serve their communities.

Why SBA 7(a) Reform Matters

In parallel, the DCUC is also advocating for reforms to the SBA’s flagship 7(a) loan program, which is often touted as a pathway to small business ownership. However, recent analyses show that veteran participation in this program has declined sharply in recent years—from 7% in 2009 to just 3% in 2023.

Why the drop?

• Complex application requirements
• Long wait times for approvals
• Limited outreach to veteran communities

By streamlining the SBA process, reducing fees, and improving veteran-specific outreach, more veterans could gain access to the financing they need to acquire existing businesses.

📖 Learn more about the SBA 7(a) program here:
https://www.sba.gov/funding-programs/loans/7a-loans

What This Means for ETA and Veterans

Entrepreneurship Through Acquisition (ETA) is one of the fastest-growing paths to small business ownership in the United States. It involves purchasing an existing business—one that already has customers, cash flow, and systems in place—rather than starting from scratch.

For veterans, ETA offers a natural transition:

• Structured operations
• Leadership opportunities
• Built-in teams and revenue
• Less financial risk than launching a startup

Yet ETA deals typically require significant upfront capital, and that’s where access to flexible financing—through SBA loans or veteran-exempt credit union lending—becomes critical.

This is where policy meets potential. With VMBLA and SBA modernization, thousands of veterans could access ETA opportunities that were previously out of reach.

How Owners in Honor Is Bridging the Gap

At Owners in Honor, we help veterans navigate the complex path from military service to business ownership. Our program includes:

• ETA education and mentoring
• Help finding viable small businesses for sale
• Access to lending partners and capital advisors
• Support throughout the due diligence and acquisition process

We believe that veteran leadership belongs in America’s small business economy—and that we all benefit when those who served have the tools to lead and build in civilian life.

This moment in Congress could be a turning point. But until laws change, we’ll keep fighting at the grassroots level to remove obstacles and open doors.

Final Thought: Your Voice Matters

If you’re a veteran, a small business owner, or someone who believes in economic opportunity for those who served, we encourage you to support DCUC’s efforts by contacting your congressional representatives.

📝 Learn more about DCUC’s campaign here:
https://www.dcuc.org/news/empowering-veteran-entrepreneurs-dcuc-urges-congress-to-lift-lending-barriers-and-expand-sba-access

And if you're ready to explore owning a business through ETA, connect with us:
🔗 www.ownersinhonor.org/contact

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