Danny Meyer’s Union Square Hospitality received PPP loans

Danny Meyer (USHG, iStock)

New York food mogul Danny Meyer has had a recurring relationship with PPP loans. Now it’s back – to the tune of $11 million.

Meyer’s Union Square Hospitality Group, which includes 18 private restaurants and cafes, took out a combined loan of between $11.4 million and $27 million from the Small Business Administration’s Paycheck Protection Program, according to Bloomberg. This comes just months after Meyer’s Shake Shack reportedly revenue $10 million in federal loans following criticism that big business had crowded out family businesses.

“PPP loans have been one of the few hopes given to the restaurant industry in recent months, so of course we applied,” Meyer told Bloomberg.

As coronavirus cases rose in the United States in recent weeks, New York City canceled plans to allow indoor dining, leaving restaurants in a precarious position.

“Takeout, delivery and limited outdoor seating provide only a fraction of the revenue restaurants need to survive,” Meyer said.

Among the restaurants that received PPP loans were Blue Smoke, Union Square Cafe and Gramercy Tavern, with Meyer saying the actual amount of loans received by USHG restaurants was closer to $11.4 million than $27 million.

Before the pandemic, USHG employed about 2,300 people. Today it employs 99 people. [Bloomberg] — Orion Jones

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