Big restaurant chains get help from small businesses, causing backlash
The Consumer Bankers Association has urged the SBA and the Treasury Department to issue guidelines that would allow banks to continue processing loans in the SBA’s “E-Tran” system until lawmakers and the administration agree. agree on the next funding cycle. Bringing loans into the system would allow small businesses to receive cash without being subject to additional arrears, said CBA President and CEO Richard Hunt.
“We try to help as many businesses as possible, but we know the window is closing,” said Robert Fisher, president and CEO of Tioga State Bank.
Restaurants have been among the businesses hardest hit during the Covid-19 outbreak due to nationwide shutdown orders. They were forced to depend on deliveries and take out orders to keep the lights on.
Potbelly and Ruth’s disclosed their loans in documents filed with the SEC.
Belly Recount investors that a subsidiary got a $ 10 million loan from JPMorgan Chase on Friday as part of the paycheck protection program. Ruth said in her SEC deposit that two of its subsidiaries were granted loans on April 7 by JPMorgan for a total of $ 20 million and that the company will use the proceeds primarily for salary costs. The maximum loan amount a business can receive under the Paycheck Protection Program is $ 10 million.
The loans were among 3,273 the SBA and banks approved for $ 5 million or more on Monday, according to agency data. The total amount of loans approved for at least $ 5 million was $ 22.8 billion, or 9 percent of all approved.
Potbelly and Ruth did not respond to requests for further comment.
Amanda Fischer, director of policy at the Washington Center for Equitable Growth, said the Small Business Administration’s definition of what is considered a “small business” has made funding constraints more pressing.
“If the responses of policymakers to the coronavirus recession strengthen rather than mitigate the trend of increasing concentration of large companies and declining dynamism of small businesses, then our country will emerge more fragile, more concentrated and less. fair than before, ”she said. wrote Tuesday.