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Cattledog

(5,897 posts)
Fri Apr 17, 2020, 04:02 PM Apr 2020

Ruth's Chris Steak House Gets $20 Million From Coronavirus Aid Program

I thought this program was for biz with under 500 employees!

The owner of the high-end Ruth’s Chris Steak House chain is among the first public companies to disclose it has received a government-backed loan to keep people on its payroll.

Ruth’s Hospitality Group Inc., a company with more than 5,000 workers, received $20 million in forgivable loans on April 7, according to a securities filing. That is four days after the Small Business Administration opened the application window on its $350 billion Payroll Protection Program.

https://www.wsj.com/amp/articles/ruths-chris-steak-house-gets-20-million-from-coronavirus-aid-program-11586895864?fbclid=IwAR3G7XSC3t9MlhVTDffnyNdeVwb1fgvRiqY5Dqg7rXhR04Wk_gRcMKCIL9Y
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Ruth's Chris Steak House Gets $20 Million From Coronavirus Aid Program (Original Post) Cattledog Apr 2020 OP
The PPP loans have to be used for payroll expenses jberryhill Apr 2020 #1
The loan can be used for anything. FoxNewsSucks Apr 2020 #3
Some of it depends on one's bank's interpretation jberryhill Apr 2020 #4
Yet actual small businesses FoxNewsSucks Apr 2020 #2
 

jberryhill

(62,444 posts)
1. The PPP loans have to be used for payroll expenses
Fri Apr 17, 2020, 04:19 PM
Apr 2020

i.e. payroll, medical insurance, and a limited number of other allowable operating expenses.

The alternative is simply dumping the employees.

FoxNewsSucks

(10,375 posts)
3. The loan can be used for anything.
Fri Apr 17, 2020, 04:29 PM
Apr 2020

to be forgiven, a minimum of 75% had to go to payroll. I heard on Randi Rhodes and Thom Hartmann that big companies were using this to replace 4, 5 or 6% lines of credit with a 1% government loan.

Not what the program should have been for.

 

jberryhill

(62,444 posts)
4. Some of it depends on one's bank's interpretation
Fri Apr 17, 2020, 05:22 PM
Apr 2020

But even if 25% of it is paying other expenses, I don't see that as a bad thing. That money all circulates somewhere, which is the point.
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