Get all the current news on coronavirus and more provided daily to your inbox. Register here
Shake Shack Inc will return the bank loan it got from the U.S. federal government, the hamburger chain’s president stated on Monday, making it the first significant company to hand back money aimed at assisting small companies ride out the coronavirus effect.
The business will immediately return the whole $10 million SBA loan as it had the ability to raise extra capital, CEO Randy Garutti and creator Danny Meyer stated in an article on Monday. Last week, it raised about $150 million in an equity offering.
GET FOX COMPANY ON THE GO BY CLICKING HERE
Low-paid employees in the retail, dining establishment and hotel industries have actually been among the hardest-hit by the coronavirus pandemic. Of the $342 billion small company bailout fund, the combined market was designated 18%of the overall fund.
SBA, which is a key part of the government’s $2.2 trillion help package, is targeted at helping small companies keep paying their staff members and their fundamental expenses during the shutdowns, so that they are able to reopen rapidly when public health allows.
CORONAVIRUS FURLOUGHS BEGIN FOR MORE THAN 100,000 DISNEY, BEST BUY, CARMAX EMPLOYEES
Shake Shack stated the cash it got might be reallocated to the independent dining establishments “who require it most, (and) have not gotten any assistance.”
The company runs around 189 restaurants in the United States, with about 45 workers in each outlet, and reported nearly $600 million in income for 2019.
TRUMP SAYS HE’S CLOSE TO A HANDLE CONGRESS ON SMALL COMPANY HELP
It has actually closed about half of its 120 locations worldwide, and furloughed or laid off more than 1,000 workers after sales fell 28.5%in March, the company stated in a filing on April 17.
On Sunday, President Donald Trump protected restaurant chains, hotel operators and hedge funds accessing funding implied for small businesses.
| Ticker | Security | Last | Modification | Change % |
|---|---|---|---|---|
| SHAK | SHAKE SHACK INC | 4350 | 0.57 | 1.33% |
More than 25%of the $350 billion currently designated went to fewer than 2%of the companies that got relief, and they consisted of openly traded companies with thousands of staff members, highly paid executives and numerous countless dollars in annual sales.
CLICK HERE TO LEARN MORE ON FOX COMPANY
U.S. Democrats and Republicans are nearing an agreement on money to assist small companies, Trump stated on Sunday. Treasury Secretary Steven Mnuchin said on CNN the offer being gone over with Congress would include $300 billion more for the Paycheck Security Program loan program for small companies.
( Reporting by Aakriti Bhalla in Bengaluru; Editing by Saumyadeb Chakrabarty)
