Brazilian steakhouse chain Fogo de Chão is one of many businesses under fire for accepting loans intended to help small businesses stay afloat during the coronavirus pandemic.
US President Donald Trump , with Administrator of the Small Business Administration Jovita Carranza, US Secretary of the Treasury Steve Mnuchin, and Senior Adviser to the President Ivanka Trump, speaks on small business relief in the Roosevelt Room of the White House in Washington, DC on April 7, 2020.
The U.S. Small Business Administration saw a crush of business owners applying for loans in early April as states across the country required storefronts to shutter in response to the threats posed by the spread of the virus. On Tuesday, the Senate tookto approve a replenishment of PPP after the money intended for distribution by the SBA ran out.
Fogo de Chão operates restaurants in a handful of countries, with 42 locations in the U.S. After launching in Brazil in 1979, the chain began expanding to other locations in the mid-1980s and was sold to the private equity firm Rhône Capital in 2018, according to. A year earlier, Fogo de Chão reported an estimated $288 million in annual revenue in filings with the U.S. Securities and Exchange Commission.
In response to the outcry over the chain's acceptance of PPP funding, CEO Barry McGowan defended the decision to accept the loans, telling theNewsweekIn addition to small business owners across the country expressing frustration over roadblocks they encountered in securing PPP loans, Fogo de Chão and other businesses that did receive approval for their loan applications have been criticized.
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