A statue of a horse stands at the entrance to a P.F. Chang’s restaurant in Schaumburg, Illinois.
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Large restaurant chains received millions in loans from the Paycheck Protection Program, based on knowledge launched Monday by the Small Business Administration and the Treasury Department.
Businesses in the lodging and meals companies sector received greater than $42 billion in funding from the program, accounting for 8.07% of the complete loans. Roughly $130 billion of the program’s $660 billion stays up for grabs.
The federal program was meant to assist struggling companies that had fewer than 500 employees, however large resort and restaurant chains gained exemptions after the coronavirus pandemic upended their industries. In April, Shake Shack, Ruth’s Chris and several other different publicly traded firms returned their loans after drawing backlash for taking cash from the rapidly depleted fund.
Famous Dave’s of America and Granite City Food & Brewery, each owned by BBQ Holdings, received loans of between $5 million and $10 million every. Their mother or father firm, which was one of the few public firms to obtain funds, has a market worth of $30 million.
Other well-known restaurant recipients embody full-service eating chains Ruby Tuesday, Ted’s Montana Grill, P.F. Chang’s and T.G.I. Friday’s.
The full-service trade has been gradual to get better, at the same time as many states reopen indoor and out of doors eating. Full-service restaurant transactions fell 25% in the week ended June 28 in comparison with the year-ago interval, based on the NPD Group.
Many of the massive full-service chains that received PPP loans are backed by personal fairness corporations. TriArtisan Capital Advisors owns the majority stake of T.G.I. Friday’s, for instance. The chain was purported to go public this 12 months by way of a merger with a particular objective acquisition firm, however the deal fell aside in April.
Fast-casual chains, together with Dig Inn, Five Guys, Mod Pizza and Chopt, received PPP loans of at the very least $5 million. Bluestone Lane, a enterprise capital-backed espresso chain, additionally acquired a mortgage of at the very least $5 million.
While massive fast-food chains didn’t apply for PPP funding, their franchisees did. Operators of some McDonald’s, Wendy’s and Yum Brands areas received loans in the vary of $5 million to $10 million. The fast-food trade has been faster to get better than the broader restaurant trade, with transactions declining simply 13% in the week ended June 28, based on the NPD Group.
Correction: This story has been up to date to replicate that the knowledge was launched from each the Small Business Administration and the Treasury Department and it included all Paycheck Protection Program loans so far, not a selected spherical.