Yesterday, the United States Senate approved the Jumpstart our Business Startups (JOBS) Act. H.R. 3606, which contained an IBAT/ICBA-supported provision to raise the SEC registration threshold for financial institutions from 500 shareholders to 2,000. This provision would allow C-corp community banks to add shareholders and raise more capital without triggering expensive and burdensome SEC oversight.
Further, the legislation also raises the de-registration threshold from 300 to 1,200, which would allow registered community banks to de-register following a stock buyback or consolidation of shareholders, thus avoiding unproductive expenses.
Following a non-threatening amendment in the Senate, the bill will be sent back to the House of Representatives for concurrence before heading to President Obama's desk for signature. The SEC will have up to one year to promulgate the rule to implement the changes.
“IBAT would especially like to thank Texas’ Senior Senator Kay Bailey Hutchison for her sponsorship and floor leadership on this important issue. This provision has been at the forefront of the Senator’s agenda to help community banks since the debate on Dodd-Frank,” said IBAT President and CEO Chris Williston, in an email to IBAT members following the vote.
All community banks are encouraged to send Senator Hutchison a letter of thanks for her work on this legislation. Given the continuing security concerns in D.C., the most expeditious method is email. If you prefer, a note may be sent to – Senator Kay Bailey Hutchison, 284 Russell Senate Office Building, Washington, D.C., 20510-4304.