At least 60 publicly traded firms have claimed loans from the $350 billion pledged to Main Street businesses, including chains such as Shake Shack and Ruth’s Chris Steak House, according to Reuters.
Last month, Congress passed the CARES Act, a more than $2 trillion coronavirus aid package, which President Trump signed into law. So far, $342.3 billion in loans from the U.S. Small Business Administration has been allocated to companies across the country.
“Loans of $2 million or more made up nearly 28% of the total, and those of at least $5 million accounted for 9%, with a number of those going to companies with access to public securities markets,” Reuters found.
Some big-name companies with more than a total of 500 employees appear to have used a provision to their advantage, Reuters reported. An exemption in the CARES Act allows food industry businesses to obtain loans as long as no more than 500 employees work at a single location.
Additionally, the aid package did not prohibit the money going to publicly listed firms.
Reuters also found companies in rural areas of the country received a disproportionately large amount of federal funds administered by the SBA.
North Dakota, Nebraska, South Dakota, and Mississippi all come in the Top 5 in terms of states that have had the most success securing loans from banks backed by the U.S. government, according to Reuters.
“The bankers here, they know the farmer, they know the barber, they know the cafe owner,” said Republican Rep. Jeff Fortenberry of Nebraska. The SBA’s loans in Nebraska reached 558 of every 1,000 businesses, according to Reuters.
The sector receiving the most money was construction with 13% of the total, and the outlet reported that “sector represents less than 9% of overall employment among U.S. firms with 500 or fewer employees, according to U.S. Census Bureau data from 2017, the latest available.”
Healthcare and food service lagged behind with 11% and 9%, respectively.
New York, California, and Texas accounted for 23% of all loans, more than $82 billion.
