The U.S. Treasury Department announced last Thursday that publicly traded companies are encouraged to repay Paycheck Protection Program loans given to them by May 7. The department said it was “unlikely that a public company with substantial market value and access to capital markets” could prove that a federal loan was necessary for it to stay afloat.
Related: ENTIRE LIST of Publicly Traded Companies That Got The BIGGEST PPP Loans <== FREE – Metroplex Social believes everyone should have easy, free access to this information.
Craziest Times Big Companies Got PPP Loans Meant For Real Small Businesses (So Far)
Since the first round of PPP funding ran out, Metroplex Social has been investigating how massive companies were able to get emergency loans that were intended as a lifeline to actual small businesses.
Our first report into big companies receiving taxpayer-backed loans is so popular, it has already been shared 4,000 times online.
Shortly after the $341 BILLION PPP loan program’s funds were exhausted we learned that at least over 100 publicly traded companies received taxpayer-backed 100% forgivable loans meant for legitimate small businesses.
Here’s the list of publicly traded companies that got the largest PPP loans (so far).
While some are cheering that publicly traded companies must now give the loans back, real small businesses are getting locked out, selling their possessions, and closing their doors after learning they wouldn’t be getting money meant to bridge the gap during the coronavirus shutdown when they needed it the most. It’s already too late for these businesses.
Others are also calling for big privately-held businesses to return PPP loans they received. The restaurant chain Fogo de Chao received $20 million in PPP funds by applying through two subsidiaries. CEO Barry McGowan defended his decision to apply for the taxpayer-backed low-interest 100% forgivable PPP loans by saying, “The scale of our business doesn’t matter.”
PLANO TX BASED FOGO DE CHAO GOT $20 MILLION PPP LOAN, CEO DOESN’T GIVE A FLIP
Hotels and restaurants were able to take advantage of a loophole in the PPP loan program after industry lobbyists, associations, hotels, and restaurants pushed Congress to add a paragraph that benefited them directly, jeopardizing millions of other small businesses in the process.
Another $310 BILLION was recently approved for the PPP program. Small businesses needing a loan should talk with their bank or an approved Small Business Administration PPP lender immediately.
SMALL BUSINESSES SUING CHASE, OTHER BIG BANKS FOR SHUFFLING LOANS TO MAKE MORE PROFIT
Here’s the stunning times huge companies thought they were entitled to Paycheck Protection Program loans meant for real small businesses.
CRAZIEST TIMES BIG COMPANIES GOT PPP LOANS MEANT FOR REAL SMALL BUSINESSES (SO FAR)
We will be updating this list as more information becomes available.
| COMPANY & LOAN AMOUNT | WHAT METROPLEX SOCIAL DISCOVERED |
|---|---|
| Ashford Inc. Ashford Hospitality Trust, Braemar Hotels & Resorts Dallas-based luxury hotel conglomerate $126.4 million | *NO PLANS to REPAY PPP Loan to SBA *95% of workforce laid off or furloughed *Won’t be using funds to rehire workers right away; using funds as a very low-interest 1% loan, no payments for initial 6 months *Asking U.S. taxpayers to bail his hotels out for 1.5 years *Owns ~130 hotels *Got $126.4 million by taking advantage of a loophole *Revenue $2.2 BILLION in 2019 *At least $4 billion in debt, stopped making payments *Market cap $17 million *Monty Bennett (CEO & Chairman) paid himself millions of dollars in preferred dividends during the economic shut down *Monty was paid $1,755,697 annual bonus in March *Monty is guaranteed another $585,233 by 12/31/2020 *Third-party preferred shareholders were paid during the shut down *Monty makes between $5.6 and $6.6 million per year *Hired lobbyists for the first time ever to make sure his hotels got a piece of PPP *Monty donated $50,000 to re-elect Trump campaign in March 2020 *Monty donated at least $143,000 to Trump Victory political action committee *Bennett has reportedly given more than $1.1 million to Trump and Republican Party since 2016 election, according to Federal Election Commission records |
| AutoNation New, used auto retailer with 360 retail locations $77 million | *Fortune 500 company *$21 BILLION in revenue *Market cap $3 billion *Laid off 7,000 employees |
| Ruth’s Chris Steak House High-end restaurant chain $20 million | *$761 million revenue 2019 *156 locations *Got the loan by having 2 subsidiaries to apply and receive the max amount *After public backlash they announced they would return the loan |
| Shake Shack Restaurant chain $10 million | *Market cap of nearly $2 billion *Laid off 1,000 workers after receiving the PPP loan *Over 250 locations *Sold significant equity shares in April 2020 *Annual revenue over $590 million *29% year over year growth *Licensing revenue $18 million *First publicly traded company to announce they would return the loan after public outrage |
| WaveLife Sciences $7.2 million | *Parent company is Singapore-based *Reported net losses of $102 million, $147 million, $194 million over the last 3 fiscal years *Market cap $286 million |
| Taco Cabana Pollo Tropical Restaurant chain $15 million | *SEC filings show Fiesta Restaurant Group received two PPP loans, one for $10 million for Taco Cabana + one for $5 million for Pollo *Executives have reduced pay 20%-35% for 13 weeks *CEO base salary was increased to $600,000 effective July 1, 2019 *At least 4 high-level executives received significant raises in 2019 *Market cap $153 million *Total 2019 revenue $660,943; net profit $226,507 |
| Potbelly Restaurant chain $10 million | *Annual sales $410 million last year *Promoted Steven W. Cirulus to roles of CFO and CSO, salary of $425,000 *Temporarily reducing $425,000 salary by 25% *Awarded him a $100,000 sign-on bonus *Eligible for year-end bonus worth up to 60% base |
| Legacy Bedford, TX based mobile home builder $6.5 million | *$231 million market cap *Recently increased borrowing capacity from $45 million to $70 million on a credit line from Capital One *Employs 800 people *Qualified due to a SBA stipulation that lets mobile home manufacturers have 1,250 workers |
| ZAGG Mobile phone screen protectors $9.4 million | *Market cap $101 million *Employed 628 people *149 worked abroad |
| Lindblad Expeditions Cruises, travel expeditions $6.6 million | *$254 million market cap *650 workers *Has not needed to layoff, furlough or reduce salaries *$137 million in cash *Branding deal with National Geographic |
| Quantum Corp. $10 million | *$159 market cap *800 employees *Paid in Dec 2019 a $1 million fine for overstating revenue |
| Marrone Bio Bio-pesticides $1.7 million | *50 employees *COO accused by SEC of over-inflating financial results to make it appear they doubled revenue during its first year as a publicly company *Fined $1.8 million in 2016 as a result *Took on $40 million in debt and has been trying to dig itself out of a hole for years |
| Cinedigm Corp. Leading independent film distributor $2.1 million | *Bison Capital, a Hong Kong-based investment firm, has owned majority of shares since 2017 *NASDAQ warned company in 2019 of getting delisted due to poor performance *NASDAQ notified company March 2020 of being delisted due to poor performance *April 2020 finalized a share transfer for significant equity stake in a China-based cinema company, promissory note $10 million *April 2020 finalized deal for exclusive distribution rights for the Bob Ross channel |
| Enservco $1.9 million | *95 employees *March annual report admits to not generating “adequate revenue to fund our current operations…substantial doubt about our ability to continue as a going concern” *Significant net operating losses in 2018, 2019 |
| LiveXLive (formerly Spotify) $2.1 million | *$121 market cap *Same day they received PPP loan funds, they renewed the CFO’s employment term for 2 years at $325,000 for 2020; $375,000 for 2021 *Also gave CFO a sign-on bonus of $100,000 |
| Fogo de Chao (PRIVATELY-held) $20 million | *Two subsidiaries applied and received $10 million each by taking advantage of loophole in the CARES Act *About 40 locations *Last known revenue $314.4 million in 2017 *CEO Barry McGowan defended the decision to apply for small business PPP loans by saying, “The scale of our business doesn’t matter.” |
Craziest Times Big Companies Got PPP Loans Meant For Real Small Businesses
Here’s the absolutely most insane times huge companies thought they were entitled to Paycheck Protection Program loans meant for real small businesses.
Here’s More on Metroplex Social:
- DALLAS HOTELIER MONTY BENNETT DOESN’T PLAN TO GIVE $126.4 MILLION PPP LOANS BACK
- Publicly Traded Companies Must Now Repay PPP Loans By May 7
- ENTIRE List of Public Companies That Took BIGGEST Loans Meant For Actual Small Businesses
- Small Business Suing Chase, Other Banks For Shuffling Loans To Make More Profit
- These Downtown McKinney TX Businesses Were Illegally Locked Out By Their Landlord
- Waze Now Lets You Find 30,000 Emergency Food Locations Near You
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Public Companies Must Now Repay PPP Loans Meant For Real Small Businesses By May 7
