Major U.S. restaurant chains have secured millions in government-backed loans that Congress created to keep small businesses afloat during the coronavirus pandemic.
Under the $349 billion Paycheck Protection Program, which ran out of money last week, Potbelly Corp., the nationwide sandwich shop chain, and Ruth's Hospitality Group, which operates a series of steakhouses, are among the big restaurants that have reported receiving loans. Prior to the virus outbreak, they reported employing thousands of workers.
Congress established the program for businesses that employ fewer than 500 workers in the $2.2 trillion CARES Act. But restaurants and hotels were granted some flexibility in the legislation — so long as they employed no more than 500 workers at any single location, they could apply for the aid.
https://www.foxbusiness.com/money/bi...organ-backlash
Not sure how I view this. Ideally huge companies like Ruth Chris steakhouse wouldn’t get PPP money ... but if they use it to keep employees on the payroll, thousands of employees on the payroll ... doesn’t that mean regular joes and janes are still employed and getting a paycheck vs being laid off?
Perhaps they will just take the super low interest loan and not worry about qualifying for a write off.
I just can’t see Ruth Chris restaurants even being open right now so how could they still employ people if there is no work to do?
Good for shake shack to give back the money.
Also read an article JP Chase didn’t process loans on first come first served as required and “shuffled” the applications giving the biggest loan requests priority bc they got a bigger fee out of it.