Hot dog icon Nathan is famous joined the growing list of companies that have repaid their Small Business Paycheck Protection Program (P3) loans.
In a filing on Monday with the Securities and Exchange Commission, the Long Island-based hot dog supplier said it received – and will come back – a loan of $ 1.2 million. Nathan’s secured the loan on April 21, the filing says, just two days before the US Treasury Department urged publicly traded companies with “substantial market value and access to capital markets” to repay all loans. received. The company, which is valued at $ 252 million, said it would repay its loan following the directives.
Nathan’s had 259 restaurants and franchises in March 2019, according to the company’s latest report Annual Report. While many of these places have temporarily closed due to coronavirus guidelines, the business has been supported by those that remain open – like its restaurant along the Coney Island promenade – and an increase in sales of products from Nathan in grocery stores, according to the SEC Filing.
While these locations may reopen in time for the summer, Nathan may not necessarily have the hot dogs needed to provide them. Monday, the company share that Smithfield Foods, the leading manufacturer of its hot dogs, has shut down.
Nathan’s Famous Hot Dogs now joins a growing list of large restaurant chains that have chosen to pay back their P3 funding after it was revealed that they were accepting small business loans. On April 20, restaurateur Danny Meyer co-wrote a letter announce that Shake Shack would pay off its $ 10 million loan, while the founders of Sweetgreen said they would do the same with the $ 10 million they received. Ruth’s Chris Steak House and Potbelly Sandwich Shop also have received and returned funding.
On Friday, Congress signed a $ 310 billion top-up of the Paycheck Protection Program into law, which could help more small businesses, including restaurants and bars.