U.S. Congressman Kenny Marchant (TX-24) has introduced H.R. 2789, the Capital Access for Small Business Banks Act. The legislation seeks to provide small banks – specifically those classified under Subchapter S of the U.S. tax code – with greater freedom to attract capital investment so they can better serve the families and businesses of their communities.
Marchant released the following statement after introducing H.R. 2789:
“Small banks are vital to a healthy and growing American economy. Subchapter S banks in particular make up roughly one-third of all U.S. banks and 90 percent of them are located in rural communities. These local banks provide invaluable support to working families and have helped countless American entrepreneurs put their ideas in motion. Yet, when small banks seek to raise capital so they can better serve their communities, our tax code restricts their access to new investment. I have introduced the Capital Access for Small Business Banks Act to fix this problem.
“At a time when many small banks are struggling just to stay in business, H.R. 2789 would offer these trusted financial institutions greater freedom to take on new investors and raise capital. In doing so, the bill would bring renewed strength to Subchapter S banks, the communities they serve and the American economy as a whole – without added risk to the broader U.S. financial system. Most importantly, the Capital Access for Small Business Banks Act would bring us one step closer to a tax code that better supports American families and job creators. That’s what small banks and our local communities deserve.”