CNN

Shake Shack returns $10 million emergency loan to the US government

Apr 20, 2020, 6:16 AM

Shake Shack NYPD...

FILE NEW YORK, NY - MARCH 29: A view outside Shake Shack in Herald Square as people remain at home to stop the spread of coronavirus on March 29, 2020 in New York City. (Photo by Noam Galai/Getty Images)

(Photo by Noam Galai/Getty Images)

(CNN) — Shake Shack is returning a $10 million loan it received from the US government under an emergency program that was touted as a way to help small businesses pay workers and keep their operations running during the coronavirus crisis.

The burger chain was awarded the loan as part of the Paycheck Protection Program (PPP). The $349 billion stimulus package, overseen by the Small Business Administration (SBA), ran out of funding last week.

Over the last few days, there has been a growing backlash over the distribution of the funds. Several media outlets have revealed how large chunks of the package were taken up by chain restaurants, hoteliers and publicly traded corporations, rather than small, local businesses.

Shake Shack CEO Randy Garutti and chairman Danny Meyer revealed their decision to give back the funding in an open letter Monday, saying that the NYSE-listed company no longer needs the money because they are “fortunate to now have access to capital that others do not.” The company said in a filing Friday that it expects to be able to raise up to $75 million from investors by selling shares.

The executives also shared their frustrations with the PPP, arguing that many restaurants had been left out unfairly because the program “came with no user manual and it was extremely confusing.”

Garutti and Meyer are now calling on the SBA to increase funding to the program. They also want the US agency to assign a local bank to work with each applicant and ease the process, and to make the forgiveness policy more flexible.

Union Square Hospitality Group, another food and beverage business that is run independently by Meyer, has received “some” of the loans it’s applied for, the executives said. They said all of those restaurants closed last month and the company was forced to lay off more than 2,000 workers. They did not specify whether that company would be returning any funds as well.

A deal for additional PPP funding, meanwhile, could be announced soon.

President Donald Trump on Sunday said during a coronavirus task force briefing that “we are continuing to negotiate with the Democrats to get our great workers and small businesses all over the country taken care of.”

“I think we are getting close to a deal. It could happen. It could happen,” Trump said. “A lot of good work has been going on and we could have an answer tomorrow and we are going to see what exactly does take place.”

— CNN’s Veronica Stracqualursi, Manu Raju and Alicia Wallace contributed to this report.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

CNN

Outside of the Yale University Law School is pictured on September 27, 2018 in New Haven, Connectic...

Zenebou Sylla, CNN

Some New England universities, including Yale, break $90,000 barrier for total tuition cost in upcoming school year

(CNN) — Several New England universities and colleges, including Yale, have reached a pinnacle of at least $90,000 for undergraduate tuition and costs starting this fall. Yale University, Tufts University, Boston University (BU), and Wellesley College are among a few private institutions that will top this year’s costs for tuition, housing and other expenses, according to […]

1 day ago

Former senator Joseph Lieberman...

Jake Tapper, CNN

Former Sen. Joe Lieberman dies at 82

Former Democratic vice presidential nominee and Sen. Joe Lieberman has died, according to a statement from his family.

2 days ago

Doughnuts are displayed for sale at a Krispy Kreme store on February 13, in Austin, Texas. Krispy K...

Ramishah Maruf, CNN

Krispy Kreme doughnuts are coming to McDonald’s

The Krispy Kreme doughnuts will be available nationwide at participating restaurants by the end of 2026, after a phased rollout beginning later this year.

2 days ago

The Federal Trade Commission is investigating TikTok for its data and security practices, two sourc...

Brian Fung and Samantha Delouya, CNN

FTC investigating TikTok over privacy and security

The probe is yet another complication for the social media platform. It's already facing the threat of a potential US ban or a forced divestment from its Chinese parent company.

2 days ago

A hand holds a tablet stamped with "MF," standing for mifepristone....

CNN

Study shows how self-managed abortion became more common, as Supreme Court abortion drug hearing looms

Medication abortion has become increasingly common since it first became available in the United States two decades ago.

3 days ago

People place flowers at a memorial outside Crocus City Hall in Moscow on Sunday following Friday's ...

Sophie Tanno, Eve Brennan, Anna Chernova and Darya Tarasova, CNN

Thousands gather in Russia to mourn victims of concert hall attack

Russia on Sunday held a day of mourning after at least 137 people were killed in a terrorist attack on a concert venue in Moscow.

4 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Shake Shack returns $10 million emergency loan to the US government