Rep. Womack Scores Major Victory with Community Banks Bill
Rep. Steve Womack (R-Ark.) – a Tea Party favorite – scored a major victory Wednesday when the House overwhelmingly approved his bill providing much need help to community banks, The Hill
The bill – H.R. 1965 – allows community banks to raise the number of shareholders from 500 to 2,000 before being required to register with the Securities and Exchange Commission. It also boosts a company’s asset threshold from $1 million to $10 million before triggering SEC registration. The measure passed 420-2.
“We have given community banks the flexibility they need to raise capital without having to comply with the onerous SEC regulations intended for larger banks,” said Rep. Steve Womack (R-Ark.).
Womack sponsored the legislation with Rep. Jim Himes (D-Conn.). Sen. Kay Bailey Hutchison, (R-Texas), introduced a companion bill in the Senate that is co-sponsored by Sen. Mark Pryor, (D-Ark.), and John Boozman, (R-Ark.).
H.R. 1965 is one of four bills the House is taking up this week aimed at easing SEC regulatory burdens on small businesses attempting to attract investors and expand operations.