Ruth's Chris Steak House receives $20M in coronavirus relief

[babylonsister]

https://finance.yahoo.com/news/ruths-chris-steak-house-receives-152729546.html

Ruth's Chris Steak House receives $20M in coronavirus relief
[Fox Business]
Daniella Genovese
Fox BusinessApril 15, 2020


The owner of the Ruth's Chris Steak House chain received $20 million in government-backed forgivable loans to help retain its staff, according to a regulatory filing, as the coronavirus pandemic continues to wreak havoc on the restaurant industry.

Ruth's Hospitality Group, Inc., which operates or franchises more than 150 restaurants, disclosed that two of its subsidiaries received $10 million from JPMorgan Chase "primarily for payroll costs," according to the filing.

The loans came on April 7, just four days after applications for Small Business Administration's $349 billion Payroll Protection Program opened. The maximum loan under the PPP is $10 million.

The program, part of the government's $2.2 trillion CARES Act, is designed to get cash in the hands of small businesses devastated by the coronavirus pandemic and incentivize them to keep staff on payroll or rehire workers who have already been laid off. They also can be used for rent, mortgage interest and utilities.

The company, like so many others, had to curtail operations at locations across the nation to limit the economic fallout created by the pandemic.

On Monday, SBA reported that more than 959,000 applications had been approved for over $232 billion from the program used to dull economic hardships created by the spread of the virus.

[Windy City Charlie]

1. This is the stuff I was afraid of

This is what I was afraid of with this bill, is all of the fraud associated with it. The crooks know that by the government trying to get this money out as quickly as possible, no one's there to verify if a business qualifies or not.

[keithbvadu2]

2. "The maximum loan under the PPP is $10 million. "

"two of its subsidiaries received $10 million"

Treated as two separate companies.

[stillcool]

3. Wonder what a big business is?

[Windy City Charlie]

7. More than 500 employees

To qualify as a small business, you have to have less than 500 employees.

[stillcool]

10. Thanks...good to know

more than 150 restaurants..you'd think they'd make the grade, but I guess not. Probably have plenty of people working under the table.

[ProfessorGAC]

11. While It's 500 Employees...

..as was correctly stated by the poster above, it's a little more complicated.
"Small" is variable dependent upon industry. 500 max is the number for retail service sector. The # of employees, even in that segment can be lower if revenue limits are achieved.
Both the employee # and the revenue limit differ for various industrial segments.
In addition the number of employees is considered an FTE, or full time equivalent.
So, 5 people working 24 hours a week, is only 3 FTEs, for instance. 8 high school or college kids working 15 hours a week is still only 3 FTEs.
They might actually have more than 500 people on the payroll, as you suggest. But they could easily have <500 FTEs.

[WyattKansas]

4. Longhorn Steakhouse is much better anyway.

Just saying.

[Cal Carpenter]

5. And now the program is out of $$, so I can't get the $3,000 my small biz might have qualified for.

Soooooo glad small businesses like this restaurant empire are getting the assistance they need....

(Note: if most of this money is going to rank and file paychecks, then I am happy those workers are getting paid. But actual small businesses shouldn't have to compete with companies like this for government grants
and loans)

[Azathoth]

6. That's a business that probably needs it

The entire hospitality industry has been wiped out.

If they need loans to keep people on the payroll, go for it.

Assuming, of course, that's what it's being used for.

[Cal Carpenter]

9. Sure but this money came from a program for small businesses

My small business has 3 employees that need to get paid. We might have qualified for a whopping $3,000 if the program hadn't already run out of money.

This shit is not right. This small business program is bullshit. And all us actual small business owners saw it from day 1. Some even applied but I dont know anyone who got one. You had to apply through a bank, and no bank would prioritize a few thousand dollar application when there are companies qualifying for millions.

[Takket]

8. Ruth's employs 5740 people

so for $20 million that's $3500 per employee.

[TomSlick]

12. Great! Stinking great.

Small businesses can't get PPP loans because first the banks prioritized their big money customers and now the money is gone.