Practice Management

Have any private practice groups run into an issue of how best to list ownership on the PPP application?  We are a private practice with 36 partners who each own less than 2%.  Our bank, JP Morgan Chase, is stating that because we don't have any partners with more than 20% ownership or at least 5 that would account for 51% ownership, the SBA will kick out our loan application.  Chase has said we are not alone and is waiting for direction from the SBA on how to record ownership before we can apply.  Just curious if anyone else has run into this issue and if they had a workaround.

Thanks,

------------------------------
Andrew Farah
Director of Operations
Drs. Harris, Birkhill, Wang, Songe & Associates
Dearborn MI
------------------------------

Original Message------

Have any private practice groups run into an issue of how best to list ownership on the PPP application?  We are a private practice with 36 partners who each own less than 2%.  Our bank, JP Morgan Chase, is stating that because we don't have any partners with more than 20% ownership or at least 5 that would account for 51% ownership, the SBA will kick out our loan application.  Chase has said we are not alone and is waiting for direction from the SBA on how to record ownership before we can apply.  Just curious if anyone else has run into this issue and if they had a workaround.

Thanks,

------------------------------
Andrew Farah
Director of Operations
Drs. Harris, Birkhill, Wang, Songe & Associates
Dearborn MI
------------------------------

We have 31 equal owners, and did not have to list them individually on the application (which was accepted by the SBA).  I did provide a shareholder list to the bank based on their initial projected document request early last week, but my impression is that probably wasn't actually necessary.

I think the application is pretty clear that you only have to list 20% owners.  I would tell the bank to submit and see what happens.  If you get rejected, I don't think you're worse off than you are now.

------------------------------
David Smith FACMPE
Executive Director
United Imaging Consultants
Mission KS
(785) 393-8387
------------------------------

Original Message:
Sent: 04-09-2020 09:07
From: Andrew Farah
Subject: CARES Act PPP Loans

Have any private practice groups run into an issue of how best to list ownership on the PPP application?  We are a private practice with 36 partners who each own less than 2%.  Our bank, JP Morgan Chase, is stating that because we don't have any partners with more than 20% ownership or at least 5 that would account for 51% ownership, the SBA will kick out our loan application.  Chase has said we are not alone and is waiting for direction from the SBA on how to record ownership before we can apply.  Just curious if anyone else has run into this issue and if they had a workaround.

Thanks,

------------------------------
Andrew Farah
Director of Operations
Drs. Harris, Birkhill, Wang, Songe & Associates
Dearborn MI
------------------------------

We bank with Atlantic Union and on the initial application I did not include the 9 partners each having 11.1 percent ownership.  I rec'd a call from the individual processing our application and it was requested to send a letter listing all of the partners names, addresses, titles, percentage of ownership, SS and home address.

------------------------------
Christine Jargowsky
Charlottesville Radiology, Ltd.

------------------------------

Original Message:
Sent: 04-09-2020 09:16
From: David Smith
Subject: CARES Act PPP Loans

We have 31 equal owners, and did not have to list them individually on the application (which was accepted by the SBA).  I did provide a shareholder list to the bank based on their initial projected document request early last week, but my impression is that probably wasn't actually necessary.

I think the application is pretty clear that you only have to list 20% owners.  I would tell the bank to submit and see what happens.  If you get rejected, I don't think you're worse off than you are now.

------------------------------
David Smith FACMPE
Executive Director
United Imaging Consultants
Mission KS
(785) 393-8387

Original Message:
Sent: 04-09-2020 09:07
From: Andrew Farah
Subject: CARES Act PPP Loans

Have any private practice groups run into an issue of how best to list ownership on the PPP application?  We are a private practice with 36 partners who each own less than 2%.  Our bank, JP Morgan Chase, is stating that because we don't have any partners with more than 20% ownership or at least 5 that would account for 51% ownership, the SBA will kick out our loan application.  Chase has said we are not alone and is waiting for direction from the SBA on how to record ownership before we can apply.  Just curious if anyone else has run into this issue and if they had a workaround.

Thanks,

------------------------------
Andrew Farah
Director of Operations
Drs. Harris, Birkhill, Wang, Songe & Associates
Dearborn MI
------------------------------

​Thanks to everyone who weighed in.  What it appears is that each bank has a different application process and requires different information specifically related to ownership.  Our bank - Chase - required detailed information on our ownership in the application.  Finally, we came up with a workaround which required us to provide information on 19 of our 36 shareholders so we could show a 51% ownership.  If we did not follow the exact guidelines we had to re-submit the application which we ended having to do 3 times.  The whole process was very frustrating to say the least and now we wait and hope our application is approved through the SBA.

------------------------------
Andrew Farah
Director of Operations
Drs. Harris, Birkhill, Wang, Songe & Associates
Dearborn MI
------------------------------

Original Message:
Sent: 04-09-2020 18:20
From: Christine Jargowsky
Subject: CARES Act PPP Loans

We bank with Atlantic Union and on the initial application I did not include the 9 partners each having 11.1 percent ownership.  I rec'd a call from the individual processing our application and it was requested to send a letter listing all of the partners names, addresses, titles, percentage of ownership, SS and home address.

------------------------------
Christine Jargowsky
Charlottesville Radiology, Ltd.


Original Message:
Sent: 04-09-2020 09:16
From: David Smith
Subject: CARES Act PPP Loans

We have 31 equal owners, and did not have to list them individually on the application (which was accepted by the SBA).  I did provide a shareholder list to the bank based on their initial projected document request early last week, but my impression is that probably wasn't actually necessary.

I think the application is pretty clear that you only have to list 20% owners.  I would tell the bank to submit and see what happens.  If you get rejected, I don't think you're worse off than you are now.

------------------------------
David Smith FACMPE
Executive Director
United Imaging Consultants
Mission KS
(785) 393-8387

Original Message:
Sent: 04-09-2020 09:07
From: Andrew Farah
Subject: CARES Act PPP Loans

Have any private practice groups run into an issue of how best to list ownership on the PPP application?  We are a private practice with 36 partners who each own less than 2%.  Our bank, JP Morgan Chase, is stating that because we don't have any partners with more than 20% ownership or at least 5 that would account for 51% ownership, the SBA will kick out our loan application.  Chase has said we are not alone and is waiting for direction from the SBA on how to record ownership before we can apply.  Just curious if anyone else has run into this issue and if they had a workaround.

Thanks,

------------------------------
Andrew Farah
Director of Operations
Drs. Harris, Birkhill, Wang, Songe & Associates
Dearborn MI
------------------------------

Original Message------

​Thanks to everyone who weighed in.  What it appears is that each bank has a different application process and requires different information specifically related to ownership.  Our bank - Chase - required detailed information on our ownership in the application.  Finally, we came up with a workaround which required us to provide information on 19 of our 36 shareholders so we could show a 51% ownership.  If we did not follow the exact guidelines we had to re-submit the application which we ended having to do 3 times.  The whole process was very frustrating to say the least and now we wait and hope our application is approved through the SBA.

------------------------------
Andrew Farah
Director of Operations
Drs. Harris, Birkhill, Wang, Songe & Associates
Dearborn MI
------------------------------

Original Message------

We had the exact same experience with Chace, Andrew.

 

Tim Barrett, CPA

Chief Executive Officer

8230 Summa Ave.,| Suite C | Baton Rouge, LA  70809-3421

office  (225) 757-0552 | fax  (225) 763-9997

tbarrett@lakeradiology.com