Bill Overview
Title: Veterans Member Business Loan Act
Description: This bill excludes from credit union aggregate loan limitations member business loans made to veterans.
Sponsors: Sen. Sullivan, Dan [R-AK]
Target Audience
Population: Veterans seeking business loans from credit unions
Estimated Size: 18100000
- The bill pertains to credit union lending practices, specifically excluding veteran member business loans from aggregate loan limitations.
- This change will directly impact veterans who are members of credit unions and are seeking business loans.
- By removing the aggregate loan limitations for these loans, potentially more veterans could access credit union business loans.
- This could affect the financial wellbeing and business opportunities for veterans worldwide, particularly in countries with significant credit union membership.
Reasoning
- The policy specifically affects veterans who are members of credit unions and are seeking business loans.
- Many veterans involve themselves in entrepreneurial activities after their military service.
- Credit unions have different policies from traditional banks, often providing more favorable terms to their members.
- Some veterans might not notice a change if they are not engaged with credit unions or are not seeking business loans.
- The opportunity to access larger loans could significantly enhance the economic opportunities for veterans, thus potentially improving their self-reported wellbeing.
Simulated Interviews
Entrepreneur (Houston, TX)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- This policy sounds promising as it could make it easier for me to expand my business.
- Credit unions have offered me better terms in the past compared to banks.
- If I can get a larger loan, I would hire more staff and expand operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Restaurant owner (San Diego, CA)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Access to a bigger loan would be game-changing for my business.
- Credit unions have always been supportive; this could make them even better partners.
- This policy could help stabilizing finances especially with seasonal fluctuations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 7 |
Consultant (Chicago, IL)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This change might increase competition between financial institutions, which could benefit veterans.
- I've consistently used my credit union for smaller, more manageable loans.
- It might not affect me much personally unless I decide to scale up.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Freelancer (Denver, CO)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I am not directly impacted as I don't have a business loan need right now.
- It's good to know that options would be there if I decide to expand or change my business scope.
- Veteran community members have been excited about this change though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Construction business owner (Miami, FL)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- I've always relied on banks more than credit unions for business.
- This change wouldn't affect my current operations much.
- It's positive news for veterans with small businesses who rely on credit unions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Food truck owner (Seattle, WA)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- This could really open things up for me, letting me buy another truck or hire more help.
- My credit union has been my financial lifeline more than once.
- The timing of this policy is perfect for my expansion plans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Gym owner (Las Vegas, NV)
Age: 33 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- Larger access to credit union loans means I might finally open my second location.
- Veterans with business ambitions can really benefit from this.
- Credit unions have always been more supportive of veterans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Real estate investor (New York, NY)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- Won't change much for me as my operations rely on larger bank dealings.
- However, indirect benefits might trickle down if smaller veteran businesses flourish.
- A positive move nonetheless for the veteran community at large.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Handcrafted goods retailer (Phoenix, AZ)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I've been going back and forth about applying for a business loan, and this might be the nudge I needed.
- My credit union offers great rates and flexible terms.
- This change could finally help me establish a physical store location.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Landscaping business owner (Atlanta, GA)
Age: 36 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- Being able to bypass loan limits could let me expand my eco-friendly services.
- It's always been a challenge to secure enough funding for equipment upgrades.
- This policy makes me optimistic about future growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $0 (Low: $0, High: $10000000)
Year 2: $0 (Low: $0, High: $10000000)
Year 3: $0 (Low: $0, High: $10000000)
Year 5: $0 (Low: $0, High: $10000000)
Year 10: $0 (Low: $0, High: $10000000)
Year 100: $0 (Low: $0, High: $10000000)
Key Considerations
- The direct cost implications to the federal government are minimal.
- Potential boosts to veteran entrepreneurship could have a long-term positive economic impact.
- The policy primarily affects credit unions and potentially their members' strategies for loan allocations.