Taco Cabana, Pollo Tropical Are Now Repaying $15 MILLION PPP Loans Meant For Small Business

Allie

9 months ago

Joining an ever-growing list, Fiesta Restaurant Group Inc., the parent company of Taco Cabana and Pollo Tropical, said that they are repaying the $15 million taxpayer-backed Payment Protection Program loan meant for actual small businesses. So far, over $1 BILLION in PPP loans were made to publicly traded companies.

Taco Cabana, Pollo Tropical Are Now Repaying $15 MILLION PPP Loans Meant For Small Business

Dallas-based Fiesta Restaurant Group Inc. disclosed in an SEC federal filing that they are repaying the taxpayer-backed Payment Protection Program loans they received on behalf of fast-casual restaurant brands Taco Cabana and Pollo Tropical.

Combined, the publicly traded companies received $15 million total under the PPP. $10 million went to Taco Cabana and $5 million went to Pollo Tropical.

The fast-casual restaurant group announced the taxpayer-backed loan return, saying it “represents the entire amount of the loans, provided by JPMorgan Chase Bank N.A. collectively to Pollo Operations Inc. and Texas Taco Cabana L.P., each an indirect subsidiary of the company.”

As of May 1, we know JP Morgan Chase Bank N.A. processed $172,852,302 of these taxpayer-backed loans to publicly traded companies under the PPP. More than $1 BILLION went to publicly traded companies (so far).

Chase and other big banks are accused in lawsuits of shuffling PPP loans to larger clients during the first few days of the initial federal relief program meant to help small businesses weather the storm due to the coronavirus pandemic and subsequent shut down. They are accused of unfair business practices that ultimately choked out many small businesses and self-employed persons from receiving much-needed funds.

U.S. Treasury Secretary Steve Mnuchin said that businesses receiving more than $2 million in loans from the Small Business Administration program would be audited and held to federal scrutiny in an attempt to rectify the problem of big companies taking PPP loans meant for real small businesses.

“To further ensure PPP loans are limited to eligible borrowers, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application,” Mnuchin said.

Mnuchin also made an announcement on Twitter May 1 calling for private schools with significant endowments to return PPP loans awarded to them.

“It has come to our attention that some private schools with significant endowments have taken #PPP loans,” he said. “They should return them.”

It has come to our attention that some private schools with significant endowments have taken #PPP loans. They should return them. @SBAgov #CARESAct #PPPLoans
— Steven Mnuchin (@stevenmnuchin1) May 1, 2020

Publicly traded businesses have until May 7 to either certify the PPP loan was necessary for continued operations or return the amounts borrowed under the program. The largest recipient under the PPP loan program is a massive hotel conglomerate, Ashford Hospitality Trust and related companies received a whopping $126.4 MILLION and their chairman/CEO Monty Bennett says he has no plans to return any taxpayer-backed PPP loans under the CARES Act.

DALLAS HOTELIER MONTY BENNETT RECEIVED $126.4 MILLION PPP LOANS – NO PLANS TO RETURN ANY OF IT

Want to see the FULL list of companies giving back PPP loans? Click here.

BIG RESTAURANTS REPAYING PPP LOANS

SHAKE SHACK – $10 MILLION they were the first to return PPP loan
SWEETGREEN – $10 MILLION {major investor is Danny Meyer, founder of Shake Shack, privately held}
J. ALEXANDER’S HOLDINGS INC. – $15,100,000
RUTH’S CHRIS – $20 MILLION
KURA SUSHI – $5,983,290
POTBELLY – $10 MILLION
NATHAN’S FAMOUS – $1,224,465
TACO CABANA / POLLO TROPICAL – $15 MILLION

BIG RESTAURANTS NOT REPAYING PPP LOANS {YET?}

PIZZA INN / PIE FIVE – Dallas area-based Pizza Inn and Pie Five received $656,830 from Chase bank.
FOGO DE CHAO – Plano-based high-end restaurant chain received $20 MILLION, CEO says the size of his business doesn’t matter.
DICK’S WINGS / TILTED KILT – $6,064,560
LUBY’S – $10 MILLION

FOGO DE CHAO GOT $20 MILLION PPP LOAN, CEO SAYS SIZE OF BUSINESS DOESN’T MATTER

Taco Cabana, Pollo Tropical Are Now Repaying $15 MILLION PPP Loans Meant For Small Business

Joining an ever-growing list, Fiesta Restaurant Group Inc., the parent company of Taco Cabana and Pollo Tropical, said that they are repaying the $15 million taxpayer-backed Payment Protection Program loan meant for actual small businesses.