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.
Source: News Formal (newsformal.com)
theothersarahh
theothersarahh JoeBudden
theothersarahh Damage is done! A lot of backlash for RuthsChris that will not go away for a while. No steaks for me and many others, thanks
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Petition Demanding Ruth’s Chris Give Back PPP Loan Has Over 200,000 SignaturesPlus, Chipotle is being fined for tainted food, and more news to start your day maureencaught Won't that result in them laying off employees?
Source: Eater - 🏆 368. / 59 Read more »
Sweetgreen Returns $10 Million PPP Loan, But It May Not Get RedistributedSweetgreen, the $1.6 billion fast-casual salad chain, said today it would return the $10 million Paycheck Protection Program loan it received but due to congressional policy, the money may not actually get reallocated in that manner As long as THEY don’t get it to pay bonuses! itsourmoney
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Source: NBCNews - 🏆 10. / 86 Read more »
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Source: BusinessInsider - 🏆 729. / 51 Read more »
Opinion | PPP Loan Terms Amount to Legalized FraudFrom WSJopinion: Healthy companies can easily exploit Paycheck Protection Program loans meant for those forced to shut down, writes Pete Vegas opinion Oversight would have been nice! opinion You mean financially healthy and morally corrupt. opinion The author of this Op-Ed applied for and took a loan even though he doesn’t need it and then wonders why other businesses couldn’t get loans? What a POS
Source: WSJ - 🏆 98. / 63 Read more »
Several major US banks are being sued for unfair PPP lending practices - Business InsiderJPMorgan Chase, Wells Fargo, Bank of America and US Bank are being sued for unfair practices in their processing of Paycheck Protection Program loans. Hate to break it to you but this is all banks regardless of size Government should have done a better job on incentivizing banks on processing smaller payroll loans than larger. They did try with a tiered commission but it wasn’t effective enough. As a reminder, people should never want big government cause they rarely get things done right Unethical
Source: BusinessInsider - 🏆 729. / 51 Read more »