1851

Potbelly, Sweetgreen and Ruth’s Chris Steak House have announced they will return loans they received from the Paycheck Protection Program.Part of the <a href="https://1851franchise.com/white-house-approves-2-trillion-stimulus-package-2712612">CARES Act</a>, the Paycheck Protection Program was designed to support small businesses affected by the COVID-19 outbreak, but the program ran out of money less than two weeks after it started accepting applications and was widely criticized for favoring larger companies.&nbsp;Typically, the Small Business Administration classifies business as “small” only if they employ fewer than 500 people, but a controversial provision of the CARES Act allowed any company to apply for the PPP’s small business loans so long as they employ fewer than 500 people per location.On Friday, President Trump authorized a <a href="https://1851franchise.com/paycheck-protection-program-resumes-lending-but-for-how-long-2712953">new round of funding for the program</a>, along with new guidelines from the SBA designed to prevent large and publicly traded companies from receiving PPP loans. The SBA is also signaling to companies that already received loans that if they do not meet the eligibility requirements of the new guidelines, they should be prepared to return their loans.“Borrowers still must certify in good faith that their PPP loan request is necessary,” <a href="https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=more-large-companies-to-return-ppp-loans-2712955" target="_blank" rel="nofollow">the SBA wrote in an FAQ released Thursday.</a> “It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.”Potbelly, a publicly traded chain with 474 locations across 32 U.S. states, received a $10 million loan from the PPP on the same day it revealed <a href="https://www.buzzfeednews.com/article/davidmack/coronavirus-small-business-loans-big-companies-potbelly?utm_source=1851franchise.com&utm_medium=article&utm_campaign=more-large-companies-to-return-ppp-loans-2712955" target="_blank" rel="nofollow">the company paid a $100,000 signing bonus to a new executive</a>."We are returning the PPP loan after further clarification from the Treasury Department. We will continue to seek alternatives to help support our employees and enable them to return to work so they can serve our loyal customers,” <a href="https://twitter.com/Potbelly/status/1254135779808477185?utm_source=1851franchise.com&utm_medium=article&utm_campaign=more-large-companies-to-return-ppp-loans-2712955" target="_blank" rel="nofollow">Potbelly wrote in a Tweet on Saturday</a>.Ruth’s Chris, which has more than 150 locations around the world, <a href="https://www.nbcnews.com/business/business-news/facing-furor-ruth-s-chris-high-end-steak-chain-returns-n1190606?utm_source=1851franchise.com&utm_medium=article&utm_campaign=more-large-companies-to-return-ppp-loans-2712955" target="_blank" rel="nofollow">released a statement on Thursday</a> saying it would return a $20 million loan it received from the program. The same day, fast-casual chain <a href="https://medium.com/@sweetgreen/why-we-decided-to-return-our-ppp-loan-9ffa870d1363?utm_source=1851franchise.com&utm_medium=article&utm_campaign=more-large-companies-to-return-ppp-loans-2712955" target="_blank" rel="nofollow">Sweetgreen committed to returning its $10 PPP loan</a>.“At the end of last week, we were approved for a $10M loan through the program. That same day, we learned that the money had run out and so many small businesses and friends in the industry who needed it most did not receive any funds. Knowing that, we quickly made the decision to return the loan,” Sweetgreen wrote in its announcement.The cascade of publicly traded companies returning their PPP loans kicked off last week, when <a href="https://1851franchise.com/shake-shack-will-return-10-million-stimulus-loan-2712861">Shake Shake announced it would return its $10 million PPP loan</a>.

More Large Companies to Return PPP Loans

1851 Franchise

Potbelly and Ruth’s Chris Steakhouse are among the publicly traded chains returning loans they received through the Paycheck Protection Program.

more-large-companies-to-return-ppp-loans

Senior Care Authority

How This Senior Care Authority Franchisee Turned Love for His Grandparents Into a Lifelong Calling

how-this-senior-care-authority-franchisee-turned-love-for-his-grandparents-into-a-lifelong-calling

HomeTeam Inspection Service

Hometown News: Like Father, Like Son — Family-Run Inspection Business Blends Generations of Expertise and a Keen Eye for Detail

father-son-home-inspection-franchise-florida

KLA Schools

KLA Schools of Beachwalk Hosts Admissions Kick-Off Celebration

kla-schools-of-beachwalk-hosts-admissions-kick-off-celebration

Good Day Columbus: Home Insurance Expert Reveals Why Central Ohio Premiums Are Rising and How to Combat Costs

rising-home-insurance-costs-ohio

CapitalSpring

Primetime Fitness Expands Crunch Portfolio With CapitalSpring’s Backing

primetime-fitness-expands-crunch-portfolio-with-capitalsprings-backing

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising

ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

More Large Companies to Return PPP Loans

MORE STORIES LIKE THIS