Coronavirus US Response: Republican Senator Says Millions In Small Business Aid 'Wasted' On Large Companies

Sen. Rick Scott, R-Fla., said Monday that millions of dollars allocated in federal small business aid amid the coronavirus outbreak are being "wasted" on large companies.

“I am concerned that many businesses with thousands of employees have found loopholes to qualify for these loans meant for small businesses. Unfortunately, when it comes to the PPP, millions of dollars are being wasted," Scott said in a statement. "Right now, companies that are not being harmed at all by the Coronavirus crisis have the ability to receive taxpayer-funded loans that can be forgiven. That’s wrong, and it takes money out of the hands of those Americans who really need it."

Last month, Congress passed $349 billion in financing for the Paycheck Protection Program, an incentive for small businesses to keep employees on their payroll. The money is meant to be given to companies with less than 500 employees, with funding for the program running out on Thursday.

Yet, many larger companies managed to secure money from the PPP. Shake Shack, a publicly traded fast-food restaurant chain, received a $10 million loan from the program, with CEO Randy Garutti saying Monday that he would return the money after the backlash.

The burger chain was able to get the money because the PPP covers any company with less than 500 employees at any given location. Shake Shack employs 8,000 people nationally at 189 restaurants but the company does not have more than 500 employees at one location.

Ruth’s Chris Steak House and Potbelly Sandwich Shop, two major U.S. chains, were also reported to have received loans from the PPP.

Republicans and Democrats in Congress are reportedly coming closer to provide more funding for the PPP as part of an “interim” spending bill. Treasury Secretary Steven Mnuchin said Sunday that the bill would likely include $450 billion in spending: $350 billion to assist small business loan programs, $75 billion for hospitals, and $25 billion for testing.

The coronavirus has hurt small businesses around the country, as states issue stay-at-home orders to prevent the spread of the disease. As of Monday at 5:05 p.m. ET, the U.S. has 749,666 coronavirus cases and 35,012 deaths.