SHAK - After Some Restaurants Return Emergency Loans Others Declare They Intend to Keep Them
Following confusion over which businesses qualify for COVID-19 emergency loans under the Paycheck Protection Program (PPP), Ruth's Hospitality Group (NASDAQ: RUTH) and Shake Shack (NYSE: SHAK) are returning their loans. However, according to a CNBC report, at least half a dozen other publicly traded companies are refusing Small Business Administration (SBA) instructions to return the funds they received, and dozens more are still debating whether to comply.
Shake Shack returned the $10 million it borrowed from the PPP even before the SBA took action. Ruth's Hospitality, parent company of the Ruth's Chris Steak House chain and other brands, immediately agreed to give back their $20 million after the SBA said yesterday that publicly traded companies should do so.
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