Public outrage and Trump administration pressure have forced dozens of companies to return government-backed small business loans
FitzGerald said he had concerns about the attention it would draw, in particular to the firm's investors and board. The company concluded that it might be taking money away from other organizations more in need and that the funds weren't a long-term fix. The firm, which employed 130 people at the outset of the pandemic, later got a loan from another lender. FitzGerald said the potential questions spurred by the PPP loan "would probably have been pretty distracting.
A growing list of well-known companies have said they plan to return the funds. Shake Shack was the first major corporation to announce the return of its loan, after it raised $150 million in the markets. The burger chain was followed by other national brands including Potbelly, Ruth's Hospitality Group and Taco Cabana.
The Treasury Department and the SBA first responded to the backlash on April 23. They told borrowers to pay closer attention to the certification they have to make when applying for the loans that states "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.
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