Over 1,000 Wealth Advisors Obtained PPP Loans | Zoom Fintech

Wealth managers are among many companies that have benefited from the Small Enterprise Administration’s Paycheck Security Program, designed to help struggling small businesses throughout the pandemic.

More than 1,400 companies known to offer financing recommendations have applied for PPP loans greater than $ 150,000, in response to information from the SBA. The loans, which are part of the Cares Act, are repayable if companies use them to keep their staff employed.

Registered Finance Advisors (RIAs) have come below the chimney to take P3 loans. Critics say companies, which typically manage billions of {dollars} in assets, don’t want money because they are able to weather market volatility. RIAs sometimes cost their prospects a recurring fee (often a share of the assets below administration) for their businesses, which includes funding administration and monetary planning. These fees may decrease when the markets go down, but RIAs still get significant income. It’s very different from other small businesses, like retailers or beauty salons, which completely lost their revenue when Covid-19 caused them to shut down. The US markets have also recovered a large part of their losses induced by the pandemic.

The loans, which are backed by {taxpayer dollars}, have helped many Wall Street businesses. Over 280 financing banks used for loans over $ 150,000, Barron reported.

The heritage advisers have also requested the support of the authorities. Many of the businesses that have used loans are small, with less than 500 people. Some are well known. Think of Ron Carson’s Carson Group Holdings, which was authorized to take out a PPP loan in early April, the SBA said. Carson Group, of Omaha, oversees $ 12 billion in consumer finance goods. He has three corporate traces: Carson Wealth invests in RIAs across the United States; Carson Teaching helps counselors build their businesses; and Carson Group Companions provides expertise, compliance, advertising and marketing to advisors.

Carson’s wealth advisory firm was not the entity used for PPP loans, a spokeswoman said in an email response to the questions. Carson, the spokesperson said, employs nearly 40 speakers who participate in its educational activities throughout the year. “These salaries may all have been affected by the postponement of our flagship Excell conference and dozens of other event cancellations that have occurred since the start of the pandemic,” she said.

Ritholtz Wealth Administration of New York, an RIA with $ 1.3 billion in assets, also got support. The agency employs 32 workers; half are consumers passing through advisers and 16 are salaried members, in response to Barry Ritholtz, president, CIO and co-founder. Ritholtz said the agency used a PPP loan “upon completion” in April to cover these workstations, as well as researchers, network designers and conference planners who will not be financial advisers.

Ritholtz got a loan of less than $ 1 million later in April, he said. In May, it was clear that “the worst-case scenario was not coming true” and Ritholtz repaid the loan again, with curiosity, in June, he said. Barron. Ritholtz, who had no debt, then took out a million dollar line of credit in July, he said. “The pandemic taught us to have a line of credit,” he said. “That’s what we’ve learned to remember.”

When asked whether or not he thought different AIRs should accept PPP loans, Ritholtz said, “No company should accept PPP. The government should just pay people directly to cover the costs of the pandemic lockdown, ”he said. “If not, businesses are the second best way to make sure people get money to cover rent, food and medicine. “

The government has also gone to companies that have done half of the mergers and acquisitions. PagnatoKarp Companions, of Reston, Va., Was cleared for a PPP loan in April. In June, Cresset Asset Administration acquired PagnatoKarp. The deal brought Cresset’s assets under management to $ 9.5 billion. A spokesperson for PagnatoKarp confirmed that they had secured a PPP loan, but declined to comment further.

Then there is Savant Capital which acquired Huber Monetary in February. The deal raised Savant’s assets under management nationwide to $ 8.5 billion, according to a press release. Savant was not reachable either.

Here is a list of some advisers who have been licensed for PPP loans:

  • Cornerstone Advisors has over $ 3 billion in assets under management. The Bellevue, Washington, agency was authorized to make a loan of $ 1 million to $ 2 million to help save 65 jobs;
  • Evensky & Katz, of Coral Gables, Fla., Authorized a loan of $ 350,000 to $ 1 million to avoid wasting 32 jobs;
  • Gitterman Wealth Administration, of Edison, NJ, has been authorized to make a loan of $ 350,000 to $ 1 million;
  • Navellier & Associates, a cash management agency based in Reno, Nevada, has been authorized to make a loan of $ 150,000 to $ 350,000 to help maintain 15 jobs;
  • PagnatoKarp Companions, of Reston, Va., Was cleared for a loan of $ 350,000 to $ 1 million to avoid losing 29 jobs;
  • Ron Carson’s Carson Group Holdings, of Omaha, has been cleared for a $ 2-5 million loan to avoid wasting 235 jobs;
  • Ritholtz Wealth Administration of New York has been authorized to make a loan of $ 350,000 to $ 1 million;
  • Sand Hill World Advisors manages $ 2.7 billion in assets. The Palo Alto, Calif., Agency was authorized to make a loan of $ 350,000 to $ 1 million to avoid wasting 28 positions;
  • Savant Capital, of Rockford, Unhealthy, manages $ 6.47 billion in assets. Savant was authorized to obtain a loan of 2 to 5 million dollars to maintain 200 jobs;
  • Scott Tiras of Houston was authorized to make a loan of $ 150,000 to $ 350,000 to avoid wasting 17 people. Tiras is President of Tiras Wealth Administration, a franchise of Ameriprise Monetary Companies (ticker: AMP). “As a franchisee and small business owner, Scott Tiras is an independent entrepreneur, not an employee. It was only his decision as the business owner to apply for the loan, ”an Ameriprise spokesperson said in an email;
  • Steward Companions World Advisory, of New York, was cleared for a loan of $ 5-10 million to avoid wasting 233 jobs;
  • Waldron Personal Wealth, of Bridgeville, Pa., Secured a loan of $ 350,000 to $ 1 million to avoid wasting 51 people;
  • Wescott Monetary Advisory Group LLC, of ​​Philadelphia, was cleared for a $ 350,000 to $ 1 million loan that saved 32 jobs.

Executives from Cornerstone, Sand Hill World, Evensky, Waldron, Wescott, Tiras, Navellier and Gitterman could not be reached for a comment.

—Stephen Garmhausen contributed to this text

Write to Luisa Beltran in [email protected]

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