A dramatic shift today as several big restaurant chains return stimulus money that was originally intended to help small businesses. This came after the Small Business Association issued new guidelines about what makes a company eligible for loans from the Paycheck Protection Program.

Ruth’s Chris is among the companies returning money. The steakhouse chain received the second most SBA funds. Public pressure is believed to have played into the decision.

Ruth’s Chris gave News & Guts statement that said, in part:

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.   

Under fire for accepting stimulus loans earmarked for struggling small businesses, Ruth's Chris Steak House will return the $20 million coronavirus small business loan it procured from the Paycheck Protection Program. https://t.co/yJpombQ15X

— Kyle Griffin (@kylegriffin1) April 23, 2020

Kura Sushi and Sweetgreen are also returning money they received. In a post, Sweetgreen wrote:

At the end of last week, we were approved for a $10M loan through the program. That same day, we learned that the money had run out and so many small businesses and friends in the industry who needed it most did not receive any funds. Knowing that, we quickly made the decision to return the loan.

Here are some of the new guidelines from the Small Business Administration and the Treasury Department:

• Borrowers still must certify in good faith that their PPP loan request is necessary.
• Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.
• Any borrower that repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.

For those who are still debating whether to return money, the SBA points out: “It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.”