Shake Shack Inc. will return a $10 million loan from the U.S. government amid criticism that the publicly traded burger chain and other larger companies gobbled up the emergency funding while smaller businesses were frozen out.
More than a dozen publicly traded companies with revenue topping $100 million received funds before the program ran out of money, according to a Bloomberg review of regulatory filings. Lawmakers in Congress are said to be near an agreement to top up the loan program, while also providing new funds for hospitals and coronavirus testing.
“Shake Shack was fortunate last Friday to be able to access the additional capital we needed to ensure our long-term stability through an equity transaction in the public markets,” Chief Executive Officer Randy Garutti and founder Danny Meyer said in a joint statement. The company said last week it sold $150 million of equity and filed Monday to offer as much as $136 million more to underwriters. Continue reading.