The Treasury Department issued new guidance on Thursday encouraging publicly-traded companies to return their coronavirus stimulus loans by May 7 as Shake Shack and other public companies have faced backlash for receiving funds meant for small businesses.
Tune into ABC at 1 p.m. ET and ABC News Live at 4 p.m. ET every weekday for special coverage of the novel coronavirus with the full ABC News team, including the latest news, context and analysis. “The goal here always was that we would reach companies that could not get money like that from anywhere else, meaning they weren’t covered in other parts of the CARES ACT, and they couldn’t get money from the private market,” Sen. Marco Rubio, R-Florida, the chairman of the Senate Small Business Committee, said in a video posted on Twitter Monday.
MORE: Billions more for small business not available immediately, will likely run out quickly: Lender That opening allowed some publicly-traded restaurant and hospitality companies to seek and secure millions of low-interest loans from the government. Ruth’s Hospitality Group, the restaurant company behind Ruth’s Chris Steak House, inked $20 million in loans through the SBA program on April 7, according to an SEC filing, but announced on Thursday that it would return the funding as well.
"There is no money to make our debt service," CEO Monty Bennett told CBS News in March, saying the company had furloughed or laid off 95 percent of its workforce."We can't make the numbers work. No one can."
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How Restaurant Titans Like Shake Shack and Sweetgreen Ended Up With Small-Business LoansIt was the Independent Restaurant Coalition that first proposed that restaurants could qualify for small-business loans based on employees per location, not employees total It should be up to 500 employees Not 500 employees per location that is just stupid but what do you expect from Congress
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Large Public Companies May Be Shut Out Of New PPP Funds After Shake Shack Fallout71 publicly traded companies received PPP loans before its original $350 billion in funding ran out last week, Forbes found. theothersarahh *should theothersarahh StayHome COVID19 theothersarahh As they should be
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Treasury says public companies should repay their PPP loansWhen the $349 billion Paycheck Protection Program quickly ran dry, big companies that landed large loans drew the ire of small businesses and their advocates. Some have announced plans to return the funds. Now the government is hoping the others pay up.
Source: CNN - 🏆 4. / 95 Read more »
Public Companies Rush To Repay Paycheck Protection Program Loans Amid Government PressureRuth's Hospitality, DMC Global, Wave Life Scienes and Sweetgreen have said they are returning their emergency small business loan funding. As they should! That money should have gone to SMALL businesses struggling to stay afloat. Let go of your insecurities. Let go of your pain. You are limitless. Nothing is holding you back. Smile. Love. Laugh. Don't forget to live. Ruth’s got caught gaming the system. Done with them.
Source: Forbes - 🏆 394. / 53 Read more »
Treasury gives public companies 2 weeks to give back PPP loans: report - Business InsiderPublicly traded companies have 2 weeks to give back loans intended for small businesses or potentially face 'severe consequences,' Treasury Department reportedly says And the banks will again get 5% commission on that money when they pass it over to the small businesses? Good. Yes..it is totally their fault they got those loans...nothing to do with the process. Cut me a break...you guys need to vet what you’re doing
Source: BusinessInsider - 🏆 729. / 51 Read more »