More than $42 billion was pumped into the foodservice and accommodation industries via the Paycheck Protection Program, according to data released by the Small Business Administration Monday.
That accounted for just over 8% of the nearly $521.5 billion approved so far under the program, which is comprised of federal loans that can be forgiven if specific criteria are met — particularly that most of the funds be used to retain or rehire workers during a specific period of time.
The data lists the borrowers of all loans of $150,000 or more, including more than 44,000 that went to full-service and limited-service restaurants. Most of those foodservice loans, more than 31,000, were in the $150,00-$350,000 range. Another 10,000 were in the $350,000-$1 million range. Some 1,900 were in the $1 million to $2 million range. A total of 980 companies got loans of between $2 million and $5 million, and 349 got loans of between $5 million and $10 million.
The National Restaurant Association’s executive vice president for public affairs, Sean Kennedy, said the data would be helpful in understanding future needs for restaurants.
“Today’s release of Paycheck Protection Program loan data provides important insight into the program’s success,” he said in a statement on Monday. “We urge federal policymakers to dive into it to determine how best to devise support for small businesses like restaurants that are clearly on the ropes. Countless restaurants across the country used a PPP loan to keep their employees on the payroll even while shuttered, but they are emerging from the program with challenges that have only grown in scope. For many, this uncertainty will linger until a vaccine is available. The PPP has been a bridge for many during the shutdown, but the restaurant industry is still looking at months of starts and stops to find a new normal in business operations. We encourage Congress and the Administration to consider bipartisan options to support the industry’s recovery.”
Many of the recipients of the largest loans are big chain restaurant groups and multiunit franchisees, who have used the funding to retain their staff and reopen dining rooms. Dunkin' Brands Inc. CEO David Hoffmann, for example, has long credited the PPP program for helping the all-franchised company manage the crisis.
Other restaurant companies — mostly public companies — responded to pressure from both the public and the government and returned their loans once it became clear that the funding for restaurants was finite. In fact, money for the program did dry up 14 days after the program started, although more funding was ultimately secured, and more than $131 billion is still available,.
The PPP was created as part of the $2 trillion Coronavirus Aid, Relief and Economic Security, or CARES, act to help keep workers employed. The program stipulated that the loans would be forgiven if the funding was used to keep or rehire a certain percentage of workers. Originally, 75% of the loans had to be devoted to payroll, but tweaks to the program ultimately lowered the percentage to 60%. If not forgiven, the loans carry an interest rate of 1%.
The PPP was originally designed as a lifeline for businesses with fewer than 500 workers, but restaurants and hotels lobbied for, and got, a specific carveout that allowed them to apply for loans if they had 500 or fewer workers per location. That paved the way for larger chains to apply for the loans.
But Treasury Secretary Steven Mnuchin later said companies with other sources of capital, such as public companies and those backed by private equity, would not be eligible because borrowers had to certify in good faith that they needed the money to stay in business. Mnuchin threatened to audit companies that got loans of more than $2 million if they didn’t return them by May 7, and many did, including Shake Shack, Ruth’s Chris Steakhouse, Nathan’s Famous and Sweetgreen.
In June, Congress extended the program, giving restaurant operators more time to hire back workers to earn loan forgiveness and increasing the repayment period.
Here are some of the large and small chain restaurant companies and franchise groups that received $5 million to $10 million in PPP loans:
99 Restaurants Holdings LLC
Abuelo’s International LP
Alamo Drafthouse Cinemas Holdings LLC
Apple Central LLC
Apple Food Service of New Jersey LLC
Apple Texas Restaurants
Aurify Brands LLC
Bad Daddy’s International LLC
Bertuccis Restaurants LLC
Black Angus Steakhouse LLC
Border Foods Inc
Boston Market Corp.
Bravo Brio Restaurants LLC
Buca Restaurants Inc.
Buca Restaurants 2 Inc.
Cameron Mitchell Restaurants LLC
Cava Mezze Grill LLC
Chopt Holdings LLC
Claim Jumper Acquisition Company LLC
Cotton Patch Café LLC
Dig Inn Restaurant Group LLC
Dinosaur Restaurants LLC
Doherty Apple Florida LLC
Duffy’s Holdings Inc.
Eat’n Park Hospitality Inc.
Eureka Restaurant Group LLC
Frisch’s Restaurants Inc.
Golden Gate Bell LLC
Il Fornaio (America) LLC
Islands Restaurants LP
Lazy Dog Restaurants LLC
Legal Sea Foods LLC
Mac Acquisition LLC
Metro Franchising Commissary LLC
Miami Hurricane Grill Inc.
Miller Apple Limited Partnership
Norms Restaurants LLC
Not Your Average Joe’s Inc.
O’Charley’s Holdings LLC
P.F. Chang’s China Bistro Inc
Pei Wei Asian Diner LLC
Planet Hollywood International Inc.
Roy’s Holdings Inc.
Rubio’s Restaurants Inc. Yoshinaga America Inc.
Ruby Tuesday Inc.
Shari’s Management Corporation
Silver Diner Development LLC
Snooze Import Export LLC
Sullivan’s Holdings LLC
Tavistock Freebirds LLC
Teds Montana Grill Inc.
TGI Fridays Inc.
The One Group LLC
Tijuana Flats Restaurants LLC
TSFR Apple Venture LLC
Tupelo Honey Hospitality Corporation
Uno Restaurants LLC
Wendy’s of Bowling Green Inc.
Wendy’s of Colorado Springs Inc.
Wendy’s of New England Inc.
Wendy’s of Puerto Rico Inc
White Castle System Inc
Additionally, multi-concept restaurant companies including Daniel Boulud’s Dinex Group in New York City and Houston-based Pappas Restaurants Inc. received PPP loans of between $5 million and $10 million.
And, as CNBC reported the Nobu and Matsuhisa chain of high-end Japanese-fusion restaurants received more than a dozen loans.
Those loans were granted to individual locations, such as the Nobu in Newport Beach, Calif., and the Matsuhisa in Aspen, Colo. All told, that group got three loans of between $2 million and $5 million, three loans of $1 million to $2 million, and eight loans of between $350,000 and $1 million.
As a reminder, more than $131 billion in PPP loans is still available. Small business owners have until Aug. 8 to apply.
Contact Bret Thorn at [email protected]
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