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Updated: Apr 21

The U.S. Small Business Association (“SBA”) created the $349 billion emergency Paycheck Protection Program (“PPP”), as described under the Coronavirus Aid, Relief, and Economic Security (“CARES") Act, to provide economic relief to small business impacted by COVID-19. The programs intention is to incentivize small businesses with fewer than 500 employees to keep their workers on payroll. However, it appears that some large publicly traded corporations have become eligible for the loan by not employing over 500 employees at a single location.


Shake Shack is the largest publicly traded company to receive a loan under the program with a market capitalization of $1.6 billion and well over 7,000 employees. They became eligible for the program because they do not employ over 500 people at a single location. The $10 million loan that they received through the program was the maximum amount allotted. Shake Shack promises to return the loan, due to having $112 million of cash on hand and recently selling another $150 million worth of stock.


As Congress and the Trump Administration work to replenish the funding for another round of PPP loans, it will be interesting to see if there will be stricter stipulations on who will be eligible. If the true intention of the program is to supply small business with economic relief, then a more stringent application process is necessary.


Budletter will continue to monitor the situation as it further develops.

Raffi Garnighian is a published author and Colorado and New York licensed attorney at Wysocki Law Group, P.C. Mitchell Steeves is a law student at the University of Colorado School of Law and assisted in the publication of this article.


© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

Today, the U.S. Small Business Association ("SBA") stopped accepting applications for funding under the Paycheck Protection Program ("PPP"), as described under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The SBA stated that the $349 billion in funding provided by Congress under the CARES Act had been exhausted after it had processed over 1.6 million loan applications in the first weeks of the program.


While the SBA has urged Congress to increase the available funding for the program, no statement has been made suggested that such an increase will or will not occur.


Budletter will continue to monitor the situation as it further develops.


© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

On Thursday, six cannabis industry groups wrote a letter to state treasures and governors asking for the creation of a state-based lending or loan guarantee program. The letter argues that this necessary to fill the gap that cannabis businesses are left in without access to the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loans (“EIDLs”).


The PPP and EIDLs were created under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, however, the SBA has stated that cannabis businesses are not eligible for SBA-funded services except for hemp and hemp-related products exempted under the Agriculture Improvement Act of 2018.


More information on the letter can be found here.


Raffi Garnighian is a published author and Colorado and New York licensed attorney at Wysocki Law Group, P.C. Kieran Edstrom is a third-year law student at the University of Denver Sturm College of Law and a law clerk for Wysocki Law Group, P.C.

© Wysocki Law Group 2020. All rights reserved. All opinions published herein are those of the individual authors and are not to be construed as legal advice. Please contact Wysocki Law Group for any legal questions you may have in response to this article or any others.

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