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Angry small businesses: Shake Shack gets money but we don't?


Yeah let me ask you about companies alike shake shack and Ruth Chriss steak house that were approved so quickly for some loans when it these loans are actually meant for small businesses now as we reported yesterday shake shack gave back the money that they receive for from the P. P. R. P. program but other large chain restaurants have not and so what we explain to our audience why that may have happened I know that shake shack in a statement said that the rules regarding who's eligible for this money and who is not it was very confusing that they ended up going by the number of people they have in their physical locations which ended up being lower than the number of of employees the government said you needed to have to be eligible for the program right so the program was he's a small business relief act to keep people employed and it was directed towards companies with five hundred employees or less but I think part of the number of exceptions in the rules specifically by industry and one of the biggest exceptions was part of the role was for hotels and restaurants and they said as long as you own five hundred people at any one location you can apply for the loans and they still supposedly Max the the lending out at ten billion but the Bruce Chris ended up applying twice and getting twenty billion so there were the biggest exception because of course here is restaurants but there are other companies that you wouldn't think of as small businesses seventy publicly traded companies including one publicly traded company that is in the cruise line business so it's definitely going to be hit well I got a loan from Citi bank and it has a hundred million dollars in cash in the bank besides outside of the PPP morning before applied a hundred billion dollars in in in in the back and so you wouldn't think of that as a small business for a company that should be tapping of fun that's meant for mom and pop businesses local restaurants that don't have access to large capital markets so now the government Congress is looking to sort of re finds this pot of money what do we know about the deal is being hammered out now we're looking at about three hundred billion dollars more for the Spartans the initial estimates for what it might be the one to all the requested yet I document a professor from Chicago booth school of business he said it's seven hundred twenty billion now that was based on companies with five hundred employees are less and the and the hotel industry but hotel restaurant but it's clear now that they're more loopholes even then and we expect well I think that number you can meet all the people who want twenty signed I think it's probably north of seven hundred and the banks or the saying that the amount of applicants they had a line people who were not able were shut out of this first round basically this new money even three hundred billion if you go with a two

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