The purpose of the PPP is to provide relief to small businesses that are struggling during the COVID19 pandemic. However, big-name corporations such as Ruth’s Chris and Shake Shack have benefitted from the programs. This has caused the PPP to quickly run out of funding to provide to other businesses. Since the funds have been depleted, Ruth’s Chris, Shake Shack, and the Lakers have returned the money to the government.
“The Lakers qualified for and received a loan under the Payroll Protection Program,” the Lakers told ESPN. “Once we found out the funds from the program had been depleted, we repaid the loan so that financial support would be directed to those most in need.”
So basically, the only reason the Lakers return the money was because the funds were depleted. The PPP closed applications on April 16th but reopened this week. Hopefully, this time around, the “small businesses” that deserve it will receive the funding.