I don't have folding rear seats; any one have any suggestions about where or how I could get some for a 96 Impreza L?

Good question. If there is one thing I have learned working on VWs its that at least with VWs you can swap out parts for other models (ie Jetta front end for a Golf front end.) I have never attempted such feats with Subarus but perhaps a Legacy owner would be interested in swapping seats if it can be done. Other than that just take a saw and cut-em in half! J/k dont listen to me I haven't slept in days.

Sedan-type folding rear seats can be found on '93-'94 LS and maybe, not sure, on '95-'96 LX (sedan and coupe).