Potbelly says it is returning funds it got through federal program meant to help small businesses
CHICAGO - Potbelly Sandwich Shop is the latest large company to say it will return money it received as part of the Payroll Protection Program.
The company said Saturday that its sales dropped dramatically when COVID-19 hit, forcing it to furlough employees and close shops. Potbelly applied for and qualified for assistance under the program.
"We were surprised and disappointed when the fund was quickly exhausted, leaving many without help," the company said in a news release. "We are returning the PPP loan after further clarification from the Treasury Department."
The Chicago-based sandwich shop has about 6,000 employees and annual revenues of more than $400 million, according to FactSet.
The PPP is intended to help small businesses with fewer than 500 employees. Its initial $349 billion in funds ran out last week and the House gave final approval to $310 billion in additional funds Thursday.