SHAK - Shake Shack Ruth's Chris Potbelly and Others Might Need to Give Loans Back Says SBA
While Shake Shake (NYSE: SHAK) already voluntarily gave back the $10 million loan it received from the Paycheck Protection Program (PPP) as part of the Trump administration's COVID-19 economic rescue bill, other companies may soon be forced to follow suit, according to the Small Business Administration (SBA). These include Potbelly (NASDAQ: PBPB), Ruth's Hospitality Group (NASDAQ: RUTH), and scores of others.
The PPP was earmarked to help small American businesses, not large, publicly traded companies with hundreds of millions or billions of dollars in value. However, the aid bill's wording created a massive loophole, already dubbed the "Shake Shack loophole" in the media because of its highest-profile user.
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