What the Shake Shack Debacle Tells Us About the Flawed Small-Business Bailout

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Shake Shack gave back its bailout money. Here’s what went wrong with the government’s small-business rescue.

he was “concerned that many businesses with thousands of employees have found loopholes to qualify for these loans meant for small businesses.” Based on these responses, you might think that chains like Shake Shack had somehow unfairly gamed the system when, in fact, the Paycheck Protection Program was written specifically to help them avoid laying off staff.

This made some sense, at least in theory. Restaurants and hotels have been battered by the coronavirus crisis. Since the whole point of the Paycheck Protection Program is to keep people employed—it offers businesses forgivable loans to cover operating expenses in return for continuing to pay their staff—it was reasonable to target larger businesses in an industry suffering mass layoffs.

 

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Sounds like the legislation worked exactly as it was written. A huge corporate giveaway.

GREED!

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 /  🏆 716. in JP

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