Shake Shack Sends Back Small Business Loan

Credit: LWYang/Flickr

The fast food chain has given back the loan so it can go to someone who really needs it.

As a part of the Paycheck Protection Program, small businesses around the United States have received loans from the government to keep business going during the COVID-19 pandemic. However, despite beginning fairly recently, the program has already completely exhausted its supply of loans, despite the fact that many small businesses are still struggling. Additionally, several chain restaurants and publicly traded businesses, whose status as “small businesses” is questionable, received loans, which has prompted some backlash. One chain that received a loan has decided they do not need the money, at least not as much as other businesses.

Northeastern fast food chain Shake Shack received a $10 million loan from the PPP, but announced on Sunday that it would send the loan back to the US government so it could be distributed to the businesses that need it more. In an open letter posted to his LinkedIn, Shake Shack CEO Randy Garutti, along with chairman Danny Meyer, explained that they have access to money-making avenues smaller businesses do not, and that they do not need the loan.

Credit: NBC

“Shake Shack, like all restaurant businesses in America, is doing the best we can to navigate these challenging times. We don’t know what the future holds. Our people would benefit from a $10 million PPP loan but we’re fortunate to now have access to capital that others do not. Until every restaurant that needs it has had the same opportunity to receive assistance, we’re returning ours,” they explained.

Garutti and Meyer also urged the government to revamp the PPP, suggesting tweaks like teaming up with local banks for eligibility screenings, eliminating the June forgiveness deadline, and generally improved funding.

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