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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhite House, GOP face heat after hotel and restaurant chains helped run small business program dry
The federal government gave national hotel and restaurant chains millions of dollars in grants before the $349 billion program ran out of money Thursday, leading to a backlash that prompted one company to give the money back and a Republican senator to say that millions of dollars are being wasted.
Thousands of traditional small businesses were unable to get funding from the program before it ran dry. As Congress and the White House near a deal to add an additional $310 billion to the program, some are calling for additional oversight and rule changes to prevent bigger chains from accepting any more money.
Ruths Chris Steak House, a chain that has 150 locations and is valued at $250 million, reported receiving $20 million in funding from the small business portion of the economic stimulus 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, a $1.6 billion burger-and-fries chain based in New York City, received $10 million. After complaints from small business advocates when the fund went dry, company founder Danny Meyer and chief executive Randy Garutti announced Sunday evening that they would return the money.
https://www.washingtonpost.com/business/2020/04/20/white-house-gop-face-heat-after-hotel-restaurant-chains-helped-run-small-business-program-dry/
OAITW r.2.0
(24,296 posts)And they fail now because all they can do is offer taxcuts for their political benefactors.
tinrobot
(10,887 posts)...and I wonder much he skimmed off the top.
Midnightwalk
(3,131 posts)Well find that a huge percentage of the 2 trillion dollars was misspent. Might be the single largest transfer of wealth to the wealthy ever.
In my opinion
dawg day
(7,947 posts)Yeah, the fix is in.
Just like Trump intended.
keithbvadu2
(36,667 posts)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
Ferrets are Cool
(21,104 posts)in these chaotic times.