Guys, remember this morning when we learned about Shake Shack returning $10M Ameros from the Payment Protection Program that they had been awarded?
“The federal government gave national hotel and restaurant chains millions of dollars in grants before the $349 billion program ran out of money Thursday, leading to a backlash that prompted one company to give the money back and a Republican senator to say that “millions of dollars are being wasted.”
“Thousands of traditional small businesses were unable to get funding from the program before it ran dry. As Congress and the White House near a deal to add an additional $310 billion to the program, some are calling for additional oversight and rule changes to prevent bigger chains from accepting any more money.
Ruth’s Chris Steak House, a chain that has 150 locations and is valued at $250 million, reported receiving $20 million in funding from the small business portion of the economic stimulus legislation called the Paycheck Protection Program. The Potbelly chain of sandwich shops, which has more than 400 locations and a value of $89 million, reported receiving $10 million last week.
“Shake Shack, a $1.6 billion burger-and-fries chain based in New York City, received $10 million. After complaints from small business advocates when the fund went dry, company founder Danny Meyer and chief executive Randy Garutti announced Sunday evening that they would return the money.
“They said they had no idea that the program would run out of money so quickly and that they understood the uproar.
“’Late last week, when it was announced that funding for the PPP had been exhausted, businesses across the country were understandably up in arms,” the two wrote in a letter posted online. “If this act were written for small businesses, how is it possible that so many independent restaurants whose employees needed just as much help were unable to receive funding?’”
— Steven Mnuchin (@stevenmnuchin1) April 20, 2020
Too little too late, Mnuchin. We all saw what happened.
It’s called patronage. The 4th Reich gave the money to their friends and donors, and if hotels and chain restaurants were at the front of the line, you know Lord Damp Nut got a cut right off the top .