Ruth’s Chris Steak House is repaying a $20 million loan it secured from the government through a recent stimulus bill.
Ruth’s Hospitality Group operates more than 100 steakhouses in the United States but was able to secure the loan through the Paycheck Protection Program (PPP).
The $349 billion program, which gave loans that can become forgivable if guidelines are followed, ran out of money because of high demand.
The hospitality group said it is returning the loan after learning of the “unintended impact” of the program’s limits.
“In an effort to protect our team members and their loved ones, Ruth’s Hospitality Group applied for and received loans under the federal government’s Paycheck Protection Program. We were eligible for this assistance, and our goal was to utilize funds to keep as many of our team members working for as long as possible, cover 100% of health care benefits and position Ruth’s Chris to rebuild its workforce as quickly as possible,” the company said in a statement sent to news outlets.
“We intended to repay this loan in adherence with government guidelines. As we learned more about the funding limitations of the program and the unintended impact, we have decided to accelerate that repayment. We remain dedicated to protecting our hardworking team. It is our hope that these funds are loaned to another company to protect their employees, just as we intended,” the company stated.
Several other companies, including Shake Shack and Sweetgreen, have also given back the money they received.
The Department of Treasury warned in updated guidelines that companies should only apply for a loan through PPP if it’s necessary.
It’s “unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith,” the department stated.
A bill that passed through Congress this week and was expected to be signed by President Donald Trump Friday included a $310 billion infusion for PPP.