The following article, Shake Shack Decides Not To Accept $10M Emergency Loan From Government, was first published on Flag And Cross.
The Shake Shack restaurant has decided to reject the $10 million loan the government sent their direction as part of an emergency program to help small businesses that have been negatively impacted by actions taken to prevent the spread of the coronavirus. The program seeks to provide monetary support to businesses so they can provide payment for their employees during this crisis.
The New York based burger chain is one of many small businesses that has qualified for the financial assistance provided by the $349 billion that’s part of the Paycheck Protection Program. This particular program has already run out of cash.
Here’s more on this from The Washington Examiner:
The restaurant’s CEO, Randy Garutti, and Chairman Danny Meyer announced their decision to give back the funding in an open letter on Sunday.
“Shake Shack was fortunate last Friday to be able to access the additional capital we needed to ensure our long term stability through an equity transaction in the public markets. We’re thankful for that and we’ve decided to immediately return the entire $10 million PPP loan we received last week to the SBA so that those restaurants who need it most can get it now,” their statement said.
“We urge Congress to ensure that all restaurants no matter their size have equal ability to get back on their feet and hire back their teams,” they added. “We are an industry of 660,000 restaurants with nearly 16 million employees. While it is heartening to see that an additional $310 billion in PPP funding is about to be approved, in order to work for restaurants, this time we need to do it better.”
One of the perks of the program is loan forgiveness, should businesses who receive the money use it to hire back furloughed or laid-off workers by the month of June.
Shake Shack, owned by Union Square Hospitality Group, originally applied for the loan hoping that things would be clarified by the time the loan was approved and they could keep employees working.
The White House has already rolled out a program to try and help get folks back to work over the coming months, but ultimately, it will be up to states to decide how best to take those guidelines and implement them.
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