Ruth Cris parent company, the Ruth’s Hospitality Group, on Thursday announced that it would return small business loan of $20 million to that it received as a result of the Small Business Association’s Payment Protection Program.
The company made the announcement after any company that has substantial market value would not likely be able to prove, in good faith, that they would need such a loan to tie them over until business return to normal operations.
Ruth Cris receiving the loan resulted in hundreds of thousands signed a petition earlier this week on Change.org demanding that the company repay the loans or face consumer backlash for years to come. Ruth Cris was just one of a handful of larger companies that were facing severe backlash after receiving small business loans that were not intended for large companies.
The petition resulted in, Ruth’s Hospitality Group announcing its decision to repay the loan at an acerbated rate. In a released statement, the company said: “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 loan program through the Small Business Administration was intended to assist small business to remain in business during the health crisis resultant on the coronavirus. However, after the original $349 billion in funding was quickly depleted, many who had applied to receive assistance were rejected. That resulted in those business drawing attention to larger companies who somehow managed to receive loans that were not intended for big business.
Ruth’s Hospitality Group was just one of many large businesses that received forgivable loans of $20 million. Those loans, which were issues for two subsidiaries of the company were slated for payroll costs,” according to the company’s filing with the SEC.
Ruth Cris History
Ruth Cris was started as a company over 60 years ago by a divorced mother who put a mortgage on her hone to purchase a small restaurant in New Orleans, Louisiana that she aptly named the Chris Steak House. However, after suffering a fire, the original location was moved and rebranded as “Ruth’s Chris Steak House.”
The company features USDA Prime steaks that are custom-aged and served on a hot plate that gives it its signature sizzle. The company continues to honour the traditions and visions of its founder and now offers its famous steaks in over 150 locations throughout the world including continental US and Canada.