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A federal crisis fund of $350 billion established to keep small businesses afloat during the coronavirus pandemic ran out this week, leaving thousands of companies waiting desperately for help.



But several giant companies with hundreds of stores, thousands of employees, and whose executives make millions announced they'd received the maximum possible payouts under the small business program.

"Unfortunately, they were in line as soon as the window opened for this program and took a lot of resources away from those small business owners where this was their only option," Holly Wade, director of research with the National Federation of Independent Business (NFIB) lobby group, told BuzzFeed News.

Sandwich maker Potbelly and Ruth's Chris Steak House successfully obtained loans worth $10 million and $20 million, respectively, according to filings this week with the Securities and Exchange Commission (SEC). Taco Cabana, which has at least 164 stores across the country and is owned by parent company Fiesta Restaurant Group, also received a $10 million loan.



All loans were from JP Morgan bank but will be backed by the US government as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. The act provided up to $350 billion in loans to businesses with 500 employees or less for payroll purposes.

But the law provided some flexibility to restaurant and hotel groups by stating they could apply as long as they had no more than 500 workers at a single location.

Under the Paycheck Protection Program (PPP), the government will forgive the loans if the money is used on payroll, rent, or utilities — and workers aren't laid off.



Potbelly, Ruth's, and Fiesta Restaurant Group are publicly traded companies so their SEC filings were made public, but private companies do not have to disclose any loans.



Potbelly's chief people officer, Matt Revord, told BuzzFeed News in a statement, "Every penny will be used to financially support the employees in our shops. Congress specifically qualified restaurants for the PPP loan program because restaurant workers are vital to our economy.”

In the very same SEC filing that revealed its PPP loan, Potbelly announced it had promoted Steven W. Cirulis to the roles of chief financial officer and chief strategy officer, paying him a $425,000 yearly salary, which has been temporarily reduced by 25% due to the pandemic. Just for signing on, Cirulis was awarded a $100,000 bonus and will be eligible for a year-end bonus worth up to 60% of his base salary.



In 2018, Potbelly CEO Alan Johnson received more than $1.6 million in salary and bonuses. The company owns more than 400 stores in the US.