Shake Shack returns $ 10 million small business loan to government
The paycheck protection program was recently criticized for providing “small business” loans to more than a dozen companies with annual revenues of hundreds of millions of dollars during the coronavirus outbreak. One of those companies was Shake Shack, which has 189 restaurants across the country, but as NBC News reports on Sunday evening (April 19), the burger chain announced it was repaying its $ 10 million loan. to the government.
In a letter posted on LinkedIn, Shake Shack founder Danny Meyer and CEO Randy Garutti wrote that they initially applied for the loan because the law said it was open to any restaurant with no more than 500 employees. “The ‘PPP’ came without a user manual and it was extremely confusing,” they wrote, adding that they believed that “the best chance of keeping our teams at work, out of the line of unemployment and rehire our laid-off and laid-off employees, would be to apply now and hope that things will be clarified in time. “
However, now that the $ 349 billion fund is already depleted, the New York-based fast food company has decided to secure outside funding and return the $ 10 million so that it can be distributed to other people. other restaurants and small businesses in need. “We now know that the first phase of the PPP was underfunded and that many of those who need it most received no help,” Meyer and Garutti wrote, adding that Congress must ensure that “all restaurants, regardless of their size, have equal capacity. to get back on their feet and recruit their teams. “
“Our people would benefit from a $ 10 million PPP loan, but we are fortunate to now have access to capital that others do not have,” they wrote. “Until every restaurant that needs it has had the same chance to receive help, we will return ours.”
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