SCOOP: Poll shows wide support for lifting credit union small business loan cap
A new poll conducted by a firm aligned with Senate Republicans reveals overwhelming public support for eliminating the federal cap on small business loans by credit unions. The survey, obtained exclusively by the Washington Reporter, indicates that voters across the political spectrum favor allowing credit unions to expand their lending capacity to better serve entrepreneurs.
Notably, Republican voters were among the most enthusiastic — a finding that suggests legislative action could come this Congress, while Republicans control both chambers.
The GrayHouse poll, conducted September 6-8, 2025, among 1,443 registered voters asked “should the current limit on credit union small-business lending be removed to let credit unions serve more small businesses?”
The poll found that 62 percent of overall voters support lifting the cap, while only 20 percent opposed, with 18 percent undecided, a net 41 point margin in favor of reform. Support was broad-based: roughly 71 percent of Republicans and 59 percent of independents backed eliminating the cap, as did 54 percent of Democrats.
Meanwhile, only 15 percent of Republicans and 26 percent of Democrats expressed opposition, underscoring the measure’s bipartisan appeal.
“By a 41-point margin, Americans want to empower credit unions to lend more to small businesses — that’s a landslide in today’s polarized climate,” one polling analyst familiar with the results told the Reporter.
Lawmakers have taken notice of the strong public sentiment. “This is a clear mandate from voters,” a senior Senate GOP aide who reviewed the poll’s findings noted to the Reporter. “Credit unions are trusted partners in our communities, and lifting the cap could unleash significant economic opportunity. This is a clear win to put in Reconciliation 2.0, an end-of-year package, or even a standalone bill that would get bipartisan support”
The 75 percent support among Republican voters in particular shows pressure on GOP lawmakers to prioritize the issue. With such broad agreement among constituents, the aide suggested, there is growing confidence that a legislative fix could garner bipartisan traction.
At issue is a federal regulation that caps member business loans by credit unions at 12.25 percent of the credit union’s total assets. This cap, established in 1998, was intended to limit credit union commercial lending, but credit union advocates have long argued it “stifles economic growth and limits affordable financing options for entrepreneurs.”
Because credit unions are member-owned nonprofits, they often offer lower interest rates and more flexible terms on small-business loans than traditional banks. These community-focused lenders can be a lifeline for local businesses that struggle to secure capital from big banks. However, the current cap artificially curtails that lifeline.
“Credit unions want to do more for small businesses, but their hands are tied by an arbitrary lending cap that doesn’t reflect market realities or member needs,” Jason Stverak, the Chief Advocacy Officer of the Defense Credit Union Council (DCUC), wrote in a June letter to Congress. DCUC and other proponents say the cap has become outdated, especially as America’s small businesses work to rebound from recent economic disruptions. Removing the lending cap, advocates argue, would allow credit unions to fill financing gaps and help sustain the local job growth that small businesses generate.
One group of entrepreneurs often highlighted in this debate are military veterans. There are approximately 1.76 million veteran-owned businesses nationwide, generating nearly $1 trillion in revenue and employing over 5 million Americans. Yet, veteran entrepreneurs frequently encounter extra obstacles in accessing capital. They are more likely to face loan denials and credit limitations, sometimes related to the financial disruptions of military service, and many resort to relying on personal savings to fund their businesses. These challenges have raised concerns that the credit union lending cap is disproportionately harming those who served.
To address this, lawmakers from both parties introduced the Veterans Member Business Loan Act (VMBLA) as a targeted first step. This bipartisan bill would exempt loans made to veteran-owned small businesses from the credit union lending cap, effectively freeing up additional capital for veteran entrepreneurs.
“The VMBLA would unlock critical funding for vets without compromising safety and soundness,” one committee summary of the proposal noted. DCUC, which represents defense-sector credit unions, has strongly endorsed the bill, telling Congress that it would “immediately unlock new sources of capital” for veteran entrepreneurs and help those who “deserve access to the tools needed to thrive.” In fact, DCUC has urged lawmakers this session to either lift the cap broadly or at least carve out exceptions for veterans and other underserved groups in multiple letters and testimonies.
Given the new poll’s evidence of overwhelming bipartisan support, credit union advocates say the time is ripe for action. “Americans across the political spectrum recognize that credit unions are a lifeline for small businesses,” Stverak noted about the survey. “This bipartisan support for eliminating the cap is a call to action. A great first step would be passing the Veterans Member Business Loan Act to exempt veteran business loans — it would immediately open doors for entrepreneurs who have served our country.” Stverak and others argue that lifting the cap, even partially, would let community credit unions pour millions more into local businesses, expanding job opportunities in the process.
Supporters are now exploring every avenue to get the cap relief across the finish line, potentially as part of a larger legislative package in the near future. Some have even floated including the reform in an upcoming economic reconciliation bill — should one advance — or attaching it to must-pass legislation.