ALERT: U.S. Treasury's Capital Purchase Plan FOR SUBCHAPTER S CORPORATIONS

    15 January 2009

    On Thursday, January 15, The U.S. Treasury released on its website materials with respect to the U.S. Government's program to permit qualifying financial institutions that have made a valid election to be taxed under Subchapter S of the Internal Revenue Code ("S-Corps") to participate in the Government's Capital Purchase Program ("CPP"). (Both the term sheet and a Q&A with respect to S-Corp participation in the CPP are attached at the end of this email.)

    For those who are familiar with the CPP for non-public institutions, this program has certain similarities; however, there are a number of notable differences.