New Jersey RIA RegentAtlantic received a government-backed coronavirus relief loan through the Paycheck Protection Program (PPP).
A spokeswoman for the RIA, based in Morristown and managing $ 4.9 billion, confirmed that the company had taken out the loan. She added that RegentAtlantic does not expect the loan to affect its ability to provide high quality advice to its clients.
“RegentAtlantic, like many other small businesses, faces challenges due to the coronavirus pandemic,” the spokesperson said. “In an abundance of caution and in the absence of clarity on the overall economic impact of the pandemic, RegentAtlantic applied for and received a loan under the [Paycheck Protection Program]. ‘
RIAs like RegentAtlantic have been forced to contend with declining revenues in recent months as market volatility brought on by the coronavirus pandemic has reduced the amount of money they bring in through asset under management fees ( AT M).
Carson Group, an RIA that oversees $ 12 billion, also recently revealed that it took out a PPP loan to protect the salaries of its event and practice management coaching teams.
Manning & Napier, an asset and wealth management company overseeing around $ 17.9 billion in assets, requested $ 6.7 million in aid under the program, but canceled its request in late April .
PPP loans are government-backed forgivable loans that are designed to ensure that businesses hit by the pandemic-induced economic downturn keep their employees on their payrolls instead of laying them off or taking them on leave. The program is administered by the Small Business Administration (SBA).
RegentAtlantic, which is minority backed by Fiduciary Network, did not comment on the loan amount. PPP loans are capped at 2.5x a company’s monthly payroll or $ 10 million, whichever is lower.
The SBA will forgive 100% of the loan proceeds used for payroll, rent, mortgages, and utilities if the borrower does not fire a full-time employee within eight weeks of loan funding and at least 75% of the discount amount is used for payroll.
By the end of Thursday’s business day, the SBA approved more than four million loans under the program, which began accepting applications on April 3.