Serving the needs of the Sub S Bank Community since 1998

We are the only association specifically created to help financial institutions maximize the benefits of their S Corporation election.

HR 2339 Capital Access for Small Business Banks Act

SubChapter S Bank Bill Introduced in House HR 2339 was introduced by Representative Kenny Marchant on May 4, 2017 in the 115th Congress. The bill would permit Subchapter S Banks and their holding companies to have 500 shareholders and to issue preferred stock. The bill is identical to HR 2789 introduced by Rep. Marchant in the 114th Congress with the exception of minor changes recommended by the Joint Committee on Taxation. Those changes limit make the number of preferred shareholders subject to the 500 shareholder limit and limit preferred shareholders to shareholders who could otherwise own Subchapter S stock. In addition, a technical wording change was made to coordinate the size of the S corp’s deduction for dividends paid on preferred stock with the gains taxable to preferred holders. Congressman Marchant has asked that the industry encourage their representatives to co-sponsor the bill with him to evidence broad support. He also asks that the industry secure the commitment of Chairman Brady to include the provisions in the original tax reform bill being drafted and anticipated to be introduced in July 2017. We invite every bank to request their Congressional representatives to sign on as co-sponsors of the bill, whether you are an S corp bank o a C corp bank. A  copy of the bill is attached.    Read more

Recent Articles view all

  • Testimony before the House Financial Institutions Subcommittee On De Novos

    Jun 23, 2017

    Patrick J. Kennedy, Jr. was asked to testify before the House Financial Institutions and Consumer Protection Subcommittee on March 21, 2017. A summary of his remarks are included in this article.  

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  • The Fiscal Cliff: How did Sub S Banks Fare?

    Jan 08, 2013

    By: Patrick J. Kennedy, Jr and William Sutherland

    Read more

  • Is S Corporation Status Still Right for You?

    Mar 30, 2011

    A variety of economic issues and the threat of increased personal tax rates have some financial institutions questioning whether S status is still right for them.

    Read more

Benefits of Membership

  • Education
    Although some time has passed since financial institutions were first allowed to be organized as S corporations, S taxation is still an entirely new world to many. Let us help your shareholders and senior management better understand the many benefits of S taxation and how you can use them to maximize your financial institution’s performance.

  • Representation
    In recent years, virtually every aspect of the community banking industry has been under scrutiny by legislators and regulators. Unfortunately, S corporation taxation is no exception. The Subchapter S Bank Association is the only organization specifically focused on protecting the benefits you enjoy as an S corporation.

  • Information
    How are the changing legislative and regulatory landscapes going to affect the way you do business as an S corporation? That is the primary question that the Subchapter S Bank Association strives to answer with its publications. Via the web, member emails and print publications, we are committed to giving you the resources you need to stay informed and in front of new challenges.

Latest Newsletter

  • Subchapter S Bank Bill Introduced In House
  • Capital Treatment of Preferred Stock Under H.R. 2339
  • New Sub S Bill Modified from Prior Bill
  • Tax Reform initiative Continues
  • Don't Lose Your S Election: It promises to be even more valuable under any tax reform proposal

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