Shake Shack plans to return the small business loan it received from the U.S. government, the burger chain’s chief executive said on Monday, making it the first major firm to hand back money aimed at helping small businesses ride out the coronavirus impact.
Here’s the tea. The burger chain was just one of several large restaurant operators and publicly traded companies that secured tens of millions of dollars in “Paycheck Protection Program” (PPP) loans designed for small businesses before funding ran out.
Who needs it? Not Shake Shack: Shake Shack CEO Randy Garutti said the company was fortunate to raise more capital in the markets — $150 million — and that it planned to return its entire PPP loan “so that those restaurants who need it most can get it now.”
“Our people would benefit from a $10 million PPP loan, but we’re fortunate to now have access to capital that others do not,” Garutti said. “Until every restaurant that needs it has had the same opportunity to receive assistance, we’re returning ours.”
Do you think Shake Shake should return their loan?