In the publication of SBA data on RIA PPP loan recipients

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Data released by the Small Business Administration (SBA) on Monday shed light on the number of investment advisory firms that have accessed government-backed Paycheck Protection Program (PPP) loans.

The dataset lists 1,436 investment advisory firms as loan recipients, by their North American Industry Classification System (NAICS) code.

However, this number is likely incomplete, both because the SBA data only includes companies that took more than $ 150,000, and because some investment advisers who said they took the loan were not. classified under this specific code. Mill Creek Capital Advisors, a Conshohocken, Pa. Based company with $ 6.7 billion in assets under management, is classified as “miscellaneous,” for example, in information about its 350,000 to 1 million loan. of dollars.

“The loan proceeds were never used and paid back in full shortly after receipt,” Mill Creek President Rich Lunsford told Citywire.

The list of loan recipients includes businesses large and small and with all kinds of specialties and support. Companies identified as beneficiaries include $ 12.8 billion from Aspiriant, $ 6.8 billion from Cynosure Group backed by Savant Capital Management and $ 4.8 billion from Estancia Capital Partners backed by Snowden Lane Partners.

A spokesperson for Aspiriant did not immediately respond to a request for comment, while a spokesperson for Snowden Lane did not immediately provide a comment. Savant Capital Management CEO Brent Brodeski explained Savant’s rationale for accessing PPP funds in a separate article.

PPP loans are forgivable loans issued under the auspices of the SBA and are designed to encourage employers to keep their employees on staff instead of firing or putting them on leave. The size of a PPP loan is a maximum of 2.5 x a company’s monthly payroll or $ 10 million, whichever is less.

The loan is potentially repayable as long as the beneficiary spends at least 60% of the funds on employee salaries and spends them within 24 weeks. A business must certify on its PPP loan application that the funds are “necessary to support ongoing operations”.

Although the SBA did not provide the specific amount for each loan, the data provides ranges for the amount each business took. A list of some major RIAs whose receipt of PPP loans has been reported by SBA data is below:

Solidify Assets under management Amount of the loan
Exencial Heritage Advisors $ 3.1 billion $ 350,000 to $ 1 million
NorthRock Partners $ 2.8 billion $ 1 million to $ 2 million
Aspirant $ 12.8 billion $ 2m- $ 5m
Miracle Mile Advisors $ 1.5 billion $ 350,000 to $ 1 million
Summit Financial $ 3.4 billion $ 2m- $ 5m
Brouwer & Janachowski $ 1.8 billion $ 350,000 to $ 1 million

Several companies adjacent to RIA have also taken out PPP loans, including Riskalyze, which took $ 2-5 million, XY Planning Network, which took between $ 350,000 and $ 1 million according to the data, and MarketCounsel, which also took taken between 350,000 and 1 million dollars.

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