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Traditional small businesses omitted when their funding ran out,
While national hotel, restaurant chains got millions.
One restaurant chain returned the money.
Will new funding trickle down to Yelm’s small businesses?

Social distancing at Shake Shack, Madison Square Park, New York City. Credit: Ben Gabbe, Getty Images
  • Editor’s note: I attended summer boys camp in northern Wisconsin from 1965-1969,
  • One of my fellow campers then was Danny Meyer, who grew-up to become one of America’s notable restaurateurs.
  • Meyer is also founder of the wildly successful Shake Shack chain of burgers, fries and shakes, which I visit when in LAX’s T-3, JFK’s T-4, NYC’s Grand Central & Penn Stations, and Birmingham’s Summit.
  • Meyer and his corporate CEO gave back money for small businesses.
  • I am very proud of Mr. Meyer and his team, wish them well.
  • Click here for the video analysis.
  • I hope new small business funding reaches our Yelm business owners!

“White House, GOP face heat after hotel and restaurant chains helped run small business program dry” – Shake Shack returns their money

The federal government gave national hotel and restaurant chains millions of dollars in grants before the $349 billion program ran out of money Thursday [April 16], leaving thousands of traditional small businesses without funding and leading to a backlash that prompted one company to give the money back.

As Congress and the White House near a deal to add another $310 billion to the small business program, some are calling for additional oversight and rule changes to prevent bigger chains from accepting any more money.

Shake Shack Inc., the $1.6 billion New York City-based burger-and-fries chain, received $10 million. After complaints from small business advocates after the fund went dry, company founder Danny Meyer and Chief Executive Officer Randy Garutti announced Sunday evening that they would be returning the money.

“They said they had no idea when the program was created it would run out of money so quickly and that they understood the uproar.

“‘Late last week, when it was announced that funding for the PPP had been exhausted, businesses across the country were understandably up in arms,’ the two wrote in a letter posted online. ‘If this act were written for small businesses, how is it possible that so many independent restaurants whose employees needed just as much help were unable to receive funding?’

“‘We now know that the first phase of the PPP was underfunded, and many who need it most, haven’t gotten any assistance.'”

In their letter, the Shake Shack executives said they were trying to do the best they could for their employees under the rules created by the government, but they acknowledged that other businesses could use the money more than they could.

“‘Our people would benefit from a $10 million PPP loan but we’re fortunate to now have access to capital that others do not. Until every restaurant that needs it has had the same opportunity to receive assistance, we’re returning ours,’ they wrote,” by Jonathan O’Connell, The Washington Post. Read more

Posted by Steve on April 20, 2020 at 12:37 pm | Permalink

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