Latest News Tagged With “Capital”

Legislation Passes Easing Capital Formation for Community Banks

Dec 15, 2014

On December 11th, 2014, HR 3329 was passed with unanimous consent by the Senate and sent to President Obama's desk for signature.  HR 3329 enhances the ability of community financial institutions to foster economic growth and serve their communities, boost small businesses, increase individual savings, and for other purposes. Specifically, the legislation will double the Small Bank Holding Company Policy Statement asset threshold from $500 million to $1 billion. H.R. 3329 also will allow small savings and loan holding companies to be covered by the policy statement’s provisions. It is estimated that the change will reduce regulatory burdens for 89 percent of bank holding companies, up from 75 percent today. The bill, introduced by Rep. Blaine Luetkemeyer (R-MO,) was a bipartisan bill that passed the House earlier this year. HR 3329  Read more

Increasing Sub S Banks Access to Capital

Jul 14, 2014

The Subchapter S Capital Access Coalition and Task Force has been organized for the specific purpose of increasing opportunities for banks, thrifts, trust companies and their parent holding companies that have elected Subchapter S federal tax treatment to raise capital and ensure the health and future success of their organizations. Our goal is to enact legislation that would (i) allow Subchapter S banks to issue “qualified preferred stock” and (ii) increase the maximum number of allowable S corporation bank shareholders from 100 to 500. Both measures are designed to enable S corporation banks, the majority of which are community banks, to significantly improve their ability to access vital sources of capital already available to other types of financial institutions. Given the significant limitations S corporation banks face in raising capital and the continued challenges associated with the economy and increasing regulation, both measures would alleviate many of the concerns currently facing S corporation banks.  Read more

Subchapter S Bank Association Mounts Grassroots Legislative Initiative

Jul 09, 2014

All too often Washington completely forgets about Subchapter S banks and their special needs and circumstances. We’ve seen it first-hand with the original TARP and SBLF programs. It is now more important than ever that the Subchapter S bank community work in a concerted effort with regulators and legislators to improve capital access to assure the long term ability of Sub S Banks to grow and serve their communities. This can only be achieved through discussion and policy-making that includes the needs and interests of Subchapter S banks at the outset of the process rather than as a mere afterthought. As many of you know, we have conducted meetings with a large number of Sub S bank CEOs from around the country and we continue to hear the concern expressed about long term capital accumulation amid increasingly challenging regulation. We also polled our membership on these issues, and the results were dramatically in favor of positive legislative action to increase the maximum number of allowable shareholders in a Subchapter S bank and to authorize the issuance of preferred stock. Based on the overwhelming support for these reforms, we are organizing a coalition of Subchapter S banks from around the country to begin the process of moving these legislative priorities forward.  Read more

The Sub S Bank Report

Mar 28, 2013

The Latest Edition of The Sub S Bank Report is Now Available for Registered Members   Read more

SBLF Term Sheet for Sub S Banks Disappoints

May 13, 2011

Late Thursday afternoon, the Treasury Department finally released a term sheet for Subchapter S banks and mutuals, allowing them to participate in the Small Business Lending Fund (SBLF). The application deadline for both S corporations and mutuals is June 6, 2011. Though many Sub S banks have been anxiously awaiting this term sheet for months now, most will be exceedingly disappointed to learn that the funds will only qualify for Tier 2 capital treatment.  Read more