Be Heard: Contact Chariman Brady

Tagged under: HR 2789, HR 3287, Tax Reform

Mar 22, 2017

We are calling on community bankers nationwide, especially S corps, to urge Chairman Brady and their members of Congress to support legislation to help s corp banks raise capital. Below please find a letter to Chairman Brady urging him to support HR 2789 & HR 3287. Please feel free to use the letter and add your own personal story when contacting Chairman Brady or your legislator.
 

March  2017

 

Honorable Kevin Brady
United States House of Representatives
1011 Longworth HOB
Washington, D.C. 20515

Re: HR 2789 and HR 3287

Dear Chairman Brady:


As a community banker, we strongly encourage you to include the substance of Capital Access for Small Business Banks Act, HR 2789, permitting S corp Banks and bank holding companies to have up to 500 shareholders and to issue preferred stock in the tax reform draft being worked on. In addition, we believe that HR 3287 permitting Banks to be organized as limited liability companies would also be of great benefit for community bank capital formation and suggest it be included as well.

S corp banks represent approximately 1/3 of the total number of banks in the United State and the vast majority of them (90%) are located in rural communities and depend on these banks for access to credit and other financial services.

Our bank has been an S corp since ______ and as it has grown and regulatory burden and capital pressures have increased, we need this proposed change to insure our long-term success and access to capital. (Other specific details)

Based on call report studies, we believe the cost of the treasury for this change will be minimal if not a positive gain when viewed from a dynamic perspective.

 

Sincerely,