Wealth management firms among those that have taken PPP loans during coronavirus pandemic

CNBC:

ONLY COMPANIES RECEIVING $150K OR MORE ARE BEING IDENTIFIED

  • The government released data on the biggest firms that took PPP loans on Monday.
  • That list includes a number of wealth management firms around the country. 
  • The revelation comes as many have asked, “Should they or shouldn’t they?” when it comes to the firms’ eligibility for that money.

The government’s release of data on businesses that have participated in the Paycheck Protection Program confirms what many in the financial advice industry already knew: Wealth management firms were among those to have taken the government loans.

The data released by the Small Business Administration and Treasury Department on Monday included loans of more than $150,000 that were made through the PPP.

The loan program was created under the $2 trillion-plus CARES Act passed by Congress in March. A list of the borrowers had not been revealed until Monday. The government did not disclose the names of businesses that took less than $150,000, in an effort to protect small businesses.

The average loan size was $107,000, according to the SBA. Loans of less than $150,000 represented 86.5% of the loans granted.

The list of bigger borrowers that was released includes wealth management firms across the country. Those firms also disclose their borrowing activity in their own public filings.

The move to take that money sparked debate within the industry. Wealth management executives cited their need to protect their businesses, and therefore their clients, by shoring up their financial reserves in the face of a crisis.

Read more at CNBC

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