After a week of public outrage over millions of Paycheck Protection Program (PPP) funds paid to publicly traded restaurant chains, the Small business management (SBA) added new guidelines to its FAQ on the program. Article 31 states:

Borrowers should make this certification in good faith, taking into account their current business activity and their ability to access other sources of sufficient liquidity to support their ongoing operations in a manner that does not significantly harm the company. For example, a public enterprise with substantial market value and access to capital markets is unlikely to be able to perform the required certification in good faith, and such an enterprise should be prepared to demonstrate to the SBA, on request, the basis of its certificate.

According to NBC News, “After the names of publicly traded companies that had received funds under the program began to make headlines, the Secretary of the Treasury Steven mnuchin warned that PPP was not meant for this type of business and said there would be penalties unless they returned the money.

Earlier this week, even before the new guidelines were released, Shake Shack decide to pay off his $ 10 million loan. Today, Ruth’s Chris Steakhouse, who bypassed the $ 10 million PPP loan cap by applying through two subsidiaries to double the maximum amount, announced he returned the 20 million dollars he had received. Sushi Kura, who was loaned nearly $ 6 million, and Soft green, a chain specializing in salads and cereal bowls, both announced yesterday the return of their PPP funds. Kura Sushi CEO and Chairman Jimmy Uba released a statement to the company website home page, while the owners of Sweetgreen posted a letter on Medium.

With Congress adding more funds to the PPP program and the SBA issuing new guidelines on the ineligibility of channels with significant access to capital, it seems likely that more small business owners will receive loan approvals and a cash infusion. much needed emergency.

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