How Restaurant Titans Like Shake Shack and Sweetgreen Ended Up With Small-Business Loans

Major restaurant chains like Ruth’s Chris Steakhouse and Potbelly have been publicly excoriated for receiving millions in government loans intended to buoy small businesses during the COVID-19 crisis. But a rule that allowed them to participate in the Paycheck Protection Program, which determined a restaurant’s eligibility based on its number of employees “per physical location,” rather than in total, wasn’t originally introduced by these chains or their lobbying groups, as.

An early draft of the CARES act, which established PPP, would have limited funding to hotel and restaurant groups with 500 or fewer employees total — but it was later amended to allow for larger restaurants to apply, provided they didn’t employ more than 500 workers at any given location. As Colicchio, “We had to explain that yes, a restaurant may have 2,000 employees, maybe spread over 18 restaurants.

The change, which pertains only to the “accommodation and food services sector,” or hotels and restaurants, essentially opened the floodgates to include the industry’s largest players, including publicly traded companies like Shake Shack, which received a $10 million loan it later“When we advocated for that [500 per location rule] on the Senate side, it included a $500 million cap to ensure that the smaller restaurants and businesses could be assured protection,” an IRC spokesperson clarifies.

Loans for locations of Shake Shack, which says it’s losing $1.5 million per week due to COVID-19 closures, wouldn’t necessarily be a problem if funds were unlimited. But the opposite is true: The $350 billion initially invested in the program ran out on April 16, less than two weeks after the program was announced.

It should be up to 500 employees Not 500 employees per location that is just stupid but what do you expect from Congress

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Facing furor, Ruth’s Chris high-end steak chain returns $20 million small business loanThe restaurant chain has been under fire for accepting stimulus loans earmarked for struggling small businesses. when there is Free money' the greedy rich are always first in line with their hands out Awe man, they're gonna have to sell like 7 steaks to make that up. Well done!
Source: NBCNews - 🏆 10. / 86 Read more »

Danny Meyer Returns Shake Shack's $10 Million Small Business LoanThe company was under fire for receiving funds when many smaller, independent restaurants were left with no support.
Source: foodandwine - 🏆 366. / 59 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 »

Restaurant chain Fogo de Chão, supported by private equity funds, to receive $20 billion in small business loansBrazilian steakhouse chain Fogo de Chão is one of many businesses under fire for accepting loans intended to help small businesses stay afloat during the coronavirus pandemic. Correct your typo! Billion?! Surely that's a typo. $20B? Really?
Source: Newsweek - 🏆 468. / 52 Read more »