White House, GOP face heat after hotel and restaurant chains helped run small business program dry

[Yo_Mama_Been_Loggin]

The federal government gave national hotel and restaurant chains millions of dollars in grants before the $349 billion program ran out of money Thursday, 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.

Ruth’s Chris Steak House, the chain that boasts 150 locations and is valued at $250 million, reported receiving $20 million in funding from the small business portion of the bailout legislation called the Paycheck Protection Program. The Potbelly chain of sandwich shops, which has more than 400 locations and a value of $89 million, reported receiving $10 million last week.

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.

https://www.msn.com/en-us/news/politics/white-house-gop-face-heat-after-hotel-and-restaurant-chains-helped-run-small-business-program-dry/ar-BB12VyyI?li=BBnb7Kz&ocid=hplocalnews

[SoonerPride]

1. Don't hese chains employ more than 500 people?

I could have sworn the law said PPP was for "small employers with 500 or less employees"

How is this even possible that these employers and schools get this money?

[2naSalit]

3. Many are franchised

so each franchise owner is considered a small business, it seems. Same with many motel chains. But there should have been better constraints on this money.

[Progressive Law]

8. The PPP has a provision that exempts hotels/restaurants from the 500 employee limit

as long as each branch location has under 500 employees. So a restaurant with 100 locations, each location under 500 employees, is still eligible even though the overall number of employees is in the thousands.

It has nothing to do with franchises, because franchise owners can apply for the PP loan themselves.

[Sanity Claws]

12. Exactly

And who in their right mind would call a business with 500 employees at unlimited multiple sites a small business?
We have 40 employees and the PPP had already run dry by the time the bank submitted our application.

[Mr.Bill]

15. They had to do it this way.

Otherwise Trump wouldn't get millions of dollars.

[sdfernando]

27. I don't believe the designation of a "small business" has anything to do with the amount of employee

I don't know about the small employers wording but if they actually said "small business" then there are billion dollar companies that fit that designation. I thought the small business designation had to do with owners, not employees or even revenue.

[greenjar_01]

2. "leaving thousands of traditional small businesses..."

Here's your edit, WaPO:

"leaving thousands of actual small businesses..."

[crickets]

5. +1

[gristy]

11. +2

[AtheistCrusader]

18. It was never for them.

Just like the 380bn was never really for the people who need it most.

[keithbvadu2]

4. Ruth's Chris Steak House got the maximum $10 million loan TWICE by considering two subsidiaries as s

Ruth's Chris Steak House got the maximum $10 million loan TWICE by considering two subsidiaries as separate companies.

They had no problem navigating the troublesome paperwork system.

https://www.democraticunderground.com/100213304091

[Mr.Bill]

16. The lobbyists they pay

probably wrote that part of the bill.

[LuvNewcastle]

23. They're expensive as hell, too.

It's kind of hard to get out of there for less than $100 a plate. After all that overcharging, they should have plenty of money. Too bad they don't practice the kind of business sense they expect of the poorest workers out there who barely make enough to survive.

[NRaleighLiberal]

6. trump...all repubs...are simply incapable if doing anything right.

total failure at every act and decision

[BComplex]

10. That's exactly what the point is, NRLiberal! They screw up everything they touch!

We have to fight this wrecking ball party at every turn.

[Fullduplexxx]

7. This is how trump will get money for his hotels

[Lonestarblue]

13. Plus he and Jared got big tax breaks in the stimulus bill.

They’ll refile old tax returns and be able to carry forward losses to continue to avoid paying any federal taxes. I’ve always that that one reason Trump refuses to release his tax returns is that they will show that he has paid no taxes for years.

[LuvNewcastle]

24. I think that's why, too.

The only way the public will ever see those returns is if the U.S. Supreme Court directs the IRS to release them, and that's not going to happen.

[Progressive Law]

9. Only 6% of America's small business were approved for the PPP loans

https://www.forbes.com/sites/brockblake/2020/04/19/ppp-loans-good-bad-ugly/#3cd0d08d7189

[Bernardo de La Paz]

14. Investigate to see if they got a heads up insider time advantage to apply. . . . nt

[cstanleytech]

17. Best way to help the economy isnt by propping up these small businesses its by helping the people

that worked at them make it through this as firmly on a financial footing as possible for when its over.
For example create program for people that earn less than 60k that provides them assistance for rent and or mortgage payments for up to 6 months.
Mind you it would need some income limits as well as other limits such as max rent and or mortgage amount it will cover not to mention the ones covered with mortgages would have limits like they cannot own a 2nd home and it has to be and remain as their primary residence during that time.
I am not talking about a cash program either rather as tax credit one where the mortgage holders or owners that are renting said properties are allowed to claim the loss as a tax credit that is spread out over the next 10 to 20 years.

[Chakaconcarne]

19. Millionaires got 180 billion in stimulus checks

Last edited Mon Apr 20, 2020, 03:41 PM - Edit history (1)

Averaging 1.7 million each... 43K millionaires...


https://www.forbes.com/sites/shaharziv/2020/04/14/why-are-rich-americans-getting-17-million-stimulus-checks/#219baf27665b

[Alex4Martinez]

20. ----When they say "small business", it never really means small businesses.

It's a term used to make it sound good.

I suppose among the top 20 corporations, 500 to 2,000 employees is "small", but your mom-n-pop independent businesses, your artists and your consultants and non-chain restaurants???

Well, they just get in the way of business to the investor class.

Fuck them all.

[IronLionZion]

22. When they say anything, they never mean what they say

just what their supporters want to hear.

[ffr]

21. Opportunistic GOP looting of the U.S. Treasury.

It's their hallmark.

[not fooled]

25. GOPee wants many small businesses to fail

so that big corporations can gobble up their market share, or private equity can buy up the businesses for pennies on the dollar.
Just like asshole USDA wrecking ball perdue told small farmers to get big or go away.

[bluestarone]

26. learn as we go!

CLOSE them fucking loopholes. WE know the rethugs will take ALL the fucking money!