Shake Shack gets funding, to return paycheck protection loan

The burger chain Shake Shack says it has obtained new funding and will return a small-business loan it got to help weather the coronavirus crisis.Shake Shack has laid off or furloughed hundreds of its employees and needed the assistance, its CEO Randy Garutti and its founder Danny Meyer said in a statement seen Monday. But the company was able to get extra funding late last week through an “equity transaction” and decided to “immediately return” the $10 million paycheck protection loan it obtained through the CARES Act. It said, “we’re fortunate to now have access to capital that others do not. Until every restaurant that needs it has had the same opportunity to receive assistance, we’re returning ours The letter said shutdowns due to the coronavirus pandemic threaten $800 billion in U.S. restaurant spending and are a severe challenge to both Shake Shack and to Meyer’s Union Square Hospitality Group.