The Treasury Department issued new guidance on Thursday encouraging publicly-traded companies to return their coronavirus stimulus loans by May 7 as Shake Shack and other public companies have faced backlash for receiving funds meant for small businesses. While small business owners struggled to secure
The Treasury Department issued new guidance on Thursday encouraging publicly-traded companies to return their coronavirus stimulus loans by May 7 as Shake Shack and other public companies have faced backlash for receiving funds meant for small businesses.
Tune into ABC at 1 p.m. ET and ABC News Live at 4 p.m. ET every weekday for special coverage of the novel coronavirus with the full ABC News team, including the latest news, context and analysis. “The goal here always was that we would reach companies that could not get money like that from anywhere else, meaning they weren’t covered in other parts of the CARES ACT, and they couldn’t get money from the private market,” Sen. Marco Rubio, R-Florida, the chairman of the Senate Small Business Committee, said in a video posted on Twitter Monday.
MORE: Billions more for small business not available immediately, will likely run out quickly: Lender That opening allowed some publicly-traded restaurant and hospitality companies to seek and secure millions of low-interest loans from the government. Ruth’s Hospitality Group, the restaurant company behind Ruth’s Chris Steak House, inked $20 million in loans through the SBA program on April 7, according to an SEC filing, but announced on Thursday that it would return the funding as well.
"There is no money to make our debt service," CEO Monty Bennett told CBS News in March, saying the company had furloughed or laid off 95 percent of its workforce."We can't make the numbers work. No one can."
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