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According to an article from NBC, Shake Shack is returning the $10 million that it was granted via the Paycheck Protection Program (PPP) part of the CARES Act, with founder Danny Meyer and CEO Randy Garutti saying in a letter that "We now know that the first phase of the PPP was underfunded, and many who need it most, haven't gotten any assistance....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." NBC mentions that Shake Shack and its parent company Union Square Hospitality Group were able to secure additional capital separately last week, prompting them to return the stimulus money.
The PPP currently allows restaurant locations to pursue loans if they have no more than 500 employees, and as the letter from Meyer and Garutti indicates, Shake Shack outlets apparently have an average of approximately 45 employees. Shake Shack and other chains, including Ruth's Chris Steak House and Potbelly Sandwich Shop, have caught flack over the past few days for securing funding from the PPP, which ran out of money in less than two weeks, leaving many small businesses--including restaurants--still awaiting funding. (The PPP is supposedly set up to help small businesses maintain their payrolls.)
by Marc Hurwitz (Also follow us on Twitter at @hiddenboston)
[A related post from our sister site (Boston's Hidden Restaurants): List of Restaurant Closings and Openings in the Boston Area]
Posted in: Dining Spots
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