Initially it seemed like a great step forward when Congress approved $350B of small business aid through the paycheck protection program (PPP). Use the funds for employee wages, rent, utilities, etc and the loan is forgiven. For small businesses, it seemed like one of the few times the federal government puts the little guy first. Well, so much for that.

We are now getting reports that publicly traded restaurant chains are getting PPP loans. Shake Shack (SHAK) and Potbelly (PBPB) got $10M each. Ruth’s Chris (RUTH) got $20M. No wonder the money ran out so fast, leaving actual “small” business owners out to dry.

Sure, large restaurant chains will use the money for wages and rent, but that’s not the point. It is about giving the money to businesses who actually need it to survive. Shake Shack just announced that after tapping their credit line, they have $112M in the bank as of April 16th. On top of that they plan to sell additional shares of stock to raise up to $75M. As if $177M would not be enough to keep them going (the company estimates they are burning through $1.4M per week, so they would have more than 2 years of cash on hand post-equity offering), let’s give them another $10M of taxpayer funds.

How many mom and pop restaurants could split that $10M? At $50,000 each, that’s 200 restaurants that are likely close to bankruptcy. Unless Congress approves more money and literally approves every loan application that is legitimately submitted, the idea that public companies can drain a small business aid package is a disgrace.