ICBA expressed support for legislation introduced by Rep. Kenny Marchant (R-Texas) that would help Subchapter S banks raise capital. The Capital Access for Small Business Banks Act (H.R. 2789) includes provisions to raise the S-corp shareholder limit from 100 to 500, allow S-corp banks to issue preferred stock without a cap, and allow preferred stock dividends to be deductible by S-corp banks and ordinary income for holders to preserve sound tax treatment. ICBA is a strong supporter of legislation to promote tax relief and equitable treatment for Subchapter S banks.
