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LM - Legg Mason Inc News Story

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Last Trade - 31/07/20

Large Cap
Market Cap £3.47bn
Enterprise Value £4.61bn
Revenue £2.21bn
Position in Universe th / 6393

Investment banks got aid intended for U.S. small businesses

Tue 7th July, 2020 1:06am
By Joshua Franklin
    July 6 (Reuters) - Tens of millions of dollars earmarked by
U.S. lawmakers to assist small businesses in the
coronavirus-induced economic downturn went to investment banks
advising on corporate dealmaking, according to official data
released on Monday. 
     As part of the Paycheck Protection Program (PPP), companies
had to certify in good faith that "current economic uncertainty
makes this loan necessary to support" their ongoing operations.
The government-backed loan is forgivable as long as the
companies restore employment to pre-pandemic levels. 
    Broadhaven Capital Partners LLC, which according to its
website has advised on more than $50 billion worth of deals in
the past decade, including the $4.5 billion sale this year of
asset manager Legg Mason Inc  LM.N  to rival Franklin Resources
Inc  BEN.N , applied for and was cleared for a PPP loan of
between $350,000 and $1 million, according to a list released by
the U.S. government on Monday.
    Broadhaven representatives did not respond to a request for
comment on why the investment bank applied for the loan and
whether it had received and used it.
    Technology-focused investment bank Union Square Advisors
LLC, consumer and healthcare-focused investment bank North Point
Advisors Inc and consumer-focused investment bank Sawaya
Partners LLC were also each approved for a loan of between
$350,000 and $1 million.
    The loans helped retain 35, 31 and 24 jobs at each firm,
respectively, according to the data released by the U.S.
Treasury Department and Small Business Administration.
    Representatives for the banks did not respond to requests
for comment.
    A spokesman for media and industrials-focused investment
Methuselah Advisors LLC said it received a PPP loan for
$169,160. He said it needed it to avoid letting staff go after
several of its projects were discontinued or suspended.
    JMP Group LLC  JMP.N , an underwriter of high-profile
initial public offerings including those of ride-hailing
start-ups Uber Technologies Inc  UBER.N  and Lyft Inc  LYFT.O ,
was approved for a PPP loan of between $2 million and $5
million, helping retain 126 jobs, according to the data.
    A spokesman for JMP, whose shares have increased in value by
a third since March, did not immediately respond to a request
for comment.

 (Reporting by Joshua Franklin in Pompano Beach, Florida;
Editing by Greg Roumeliotis and Peter Cooney)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))
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