Shake Shack Says It Will Return Its $10 Million Stimulus Loan

Shake Shack, the fast-food chain, said on Sunday that it was returning a $10 million loan from a federal program to help small businesses, following criticism that the stimulus program had favored large chains.

The $349 billion stimulus effort, which was distributed on a first-come, first-served basis, was exhausted in just two weeks, with many loans favoring larger companies that were better able to navigate the application process.

Paycheck protection program loans from the Small Business Administration will be forgiven for companies that do not lay off staff or that rehire them by June 30.

Shake Shack, with 189 outlets and nearly 8,000 employees in the United States, said that it had secured the additional capital it needed through an equity transaction on Friday.

Article source: https://www.nytimes.com/2020/04/20/business/shake-shack-loan.html