A firestorm of public backlash and new guidance from the federal government related to the embattled Paycheck Protection Program prompted Ruth’s Chris Steak House to return a $20 million loan by theothersarahh
from the federal government related to the embattled Paycheck Protection Program prompted Ruth’s Chris to return a $20 million loan, and more companies are likely to follow suit; under the Treasury’s new rule, public companies may also be barred from accessing the latest round of small business funding.In order to receive a PPP loan, businesses must certify that they are in need of funding that they can’t get from any other source.
The SBA said that since public companies have both cash value in the form of shares and access to capital markets , it’s “unlikely” that they will be able to make that certification.that 71 publicly traded companies that received PPP loans before its $350 billion in funding ran out last week. “We intended to repay this loan in adherence with government guidelines, but as we learned more about the funding limitations of the program and the unintended impact, we have decided to accelerate that repayment,” Ruth’s Hospitality Group CEO Cheryl J. HenryShake Shack was the most highly valued publicly traded company to receive a loan , though after a public backlash the companyOther large restaurant chains including Potbelly and J. Alexander’s also received PPP money.
can apply for loans of up to $10 million at 1% interest so they can cover two months of payroll and overhead expenses. If the borrower retains workers and doesn’t cut their wages, the government will forgive most or all of the loan and repay the bank lenders.
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