Ruth's Chris Joins Firms Returning Small-Business Loans: Reports

Ruth’s Hospitality Group Inc. is returning $20 million in loans from a U.S. government stimulus fund meant for small businesses, according to Dow Jones and other media reports.

The owner of steakhouses joins other restaurant chains, including Shake Shack Inc., Sweetgreen Inc. and Kura Sushi USA, Inc. in giving back borrowings under the Paycheck Protection Program. Media reports pointed out that several large firms had received financial support while smaller businesses were unable to get them.

Subsidiaries of Fiesta Restaurant Group Inc. are also determining whether or not to return loans. And DMC Global Inc., a metals company, said it’s returning a $6.7 million loan after reviewing the new guidelines for public companies.

The stimulus program being run by the Small Business Administration was aimed at firms with as many as 500 employees. But a lobbyist-backed loophole allowed for restaurant chains to receive funds.

Read more: ‘Shake Shack Loophole’ Stays Open, Spawns a Washington Whodunit

A second round of funding will aim to limit large companies from applying with new guidance that makes it unlikely that a public company would be eligible. Treasury Secretary Steven Mnuchin has encouraged other companies that “may have not been clear in understanding the certification” to also send back loans, and he’s also said companies that took funding and didn’t really need it could be “subject to investigation.”

Ruth’s didn’t respond to requests for comment.