In the first such development, in a blog post, burger chain Shake Shack Inc stated, it will return the business loan that it took from the U.S. government which was meant to help businesses ride out the impact of the coronavirus lockdown.
Shake Shack will return the entire $10 million U.S. Small Business Administration (SBA) loan after it managed to raise additional capital, said CEO Randy Garutti and founder Danny Meyer in a blog post.
Last week, Shake Shack had raised nearly $150 million through an equity offering.
The SBA is a key part of the Trump Administration’s $2.2 trillion aid package aimed at helping small companies continuing to pay their employees along with their basic bill during the coronavirus shutdown, so that they are able to reopen quickly when public health recovers.
In a tweet, Treasury Secretary Steven Mnuchin said he was “glad to see” that Shake Shack would return the loan.
On Sunday, Mnuchin told CNN that a $300 billion deal was being hammered out with Congress – Paycheck Protection Program – which will will provide small businesses a loan program.