On December 11th, 2014, HR 3329 was passed with unanimous consent by the Senate and sent to President Obama’s desk for signature. HR . . .
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.
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 . . .
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.