By Scott Simpson
Financial security may typically be viewed as a personal achievement, but for those in uniform, their financial capability is shaped by national priorities and institutional support. Credit unions are proud to serve this community because, at the end of the day, financial freedom is only possible because our service members ensure our physical freedom every day.
May is Military Appreciation Month, and the credit union movement has a long legacy of supporting Americans in uniform. During World War II, some credit unions were chartered to serve the millions of Americans called to serve abroad. Today, this mission continues.
Defense credit unions uniquely understand, and are structured to address, the distinct financial needs associated with military service. That service extends throughout all stages of their military careers, life milestones, and beyond.
Because at their best, credit unions are not merely financial institutions, but stabilizing partners for a population whose financial well-being is impacted by unpredictability, mobility, and sacrifice.
American service members make immense sacrifices. A central part of the job is going where duty calls, regardless of the danger. There are roughly 1.3 million active duty U.S. service members and around 18 million veterans.
New, young enlistees might need a loan for a car. Credit unions provide financial education, help them build credit, and keep them away from high-interest rate loans from dealerships and predatory lenders.
These financial needs become even more apparent during periods of national instability. Sometimes politics hit the military as collateral, like it did during the record-breaking government shutdowns we’ve seen in recent months. Pay disruptions during congressional stalemates expose a vulnerability for service men and women who cannot pause their service.
Critical Need For Cooperative Finance
The recent, long-lasting government shutdowns emphasized the critical need for cooperative finance in our country. Weeks without certainty of pay would strain any household budget; it’s especially hard when you must have personal readiness to respond when duty calls.
But this reflects the foundational purpose of credit unions: to empower people’s financial well-being and be a trusted partner in times of need. During the shutdown, credit unions offered broad relief, such as interest-free, fee-free loans with no credit check to make sure they could pay their bills while Congress sorted out the shutdown. Navy Federal Credit Union’s relief resulted in more than 190,000 loans, totaling more than $345 million, with no impact to their members’ credit history and no interest charged.
When service members are deployed, that brings its own set of challenges. Standard financial fraud protection systems do not always recognize the frequent location changes required of some military members. Or these men and women might need help at 9 a.m. in Germany, which is the middle of the night in the U.S. Families may also need additional support while a spouse is deployed.
Credit unions serving military personnel understand this. They provide tailored support that address practical, often overlooked barriers, of financial accessibility. These financial challenges do not end as they transition to civilian life. Roughly a quarter of veterans say they want to start their own business. This entrepreneurial spirit not only supports their economic mobility, but also enhances local economic resilience, especially in communities with a large military presence. Credit unions help them get that capital at the best rates in the market. Abound Credit Union in Radcliff, Ky., is just one example. They provided a needed business loan for a veteran to pursue his passion.
Credit unions fill many financial needs for service members, and America’s Credit Unions is relentless in its advocacy to preserve access to credit unions, whether by their presence on military installations or safe, affordable lending. Our policy priorities, such as the bipartisan Veterans Member Business Loan Act—which would exempt loans made to veteran-owned businesses from the arbitrary credit union member business lending cap —represent an opportunity to align regulatory frameworks with economic opportunity.
Credit unions are serving American service members to the best of their ability. They help them achieve financial freedom.
Monday is Memorial Day, a day to honor and mourn the service members who died in the line of duty. How we show up for them and their families should not be limited solely to this day of remembrance but rather should be an unending practice of gratitude and service in return.
Scott Simpson is President & CEO of America’s Credit Unions.