SAN ANTONIO — Taco Cabana is under fire this week for accepting millions of dollars meant to help small businesses survive the ongoing coronavirus pandemic.
A Securities and Exchange Commission filing shows Taco Cabana was granted a $10 million loan under the Coronavirus Aid Relief and Economic Security, or CARES Act.
The chain, started in San Antonio, has close to 150 locations after closing 19 in January.
Under the CARES Act, close to $350 billion was handed out to companies through the Paycheck Protection Program. It was meant to help keep employees on the payroll, and the help was generally limited to companies with 500 employees or fewer.
An exception was made, however, for the restaurant and hotel industry, and a list of large companies took advantage of the loophole.
The owner of Ruth Chris Steakhouse reportedly accepted $20 million, and Shake Shack landed $10 million.
Once the word got out, people took to social media to express their outrage, calling out Taco Cabana and other companies that accepted the funds.
President Donald Trump responded to questions during a press conference Tuesday and also called out Harvard University for accepting funds under the CARES Act.
“Harvard's gonna pay back the money. They shouldn't be taking it,” Trump said. “I'm not going to mention any other names, but when I saw Harvard, they have one of the largest endowments anywhere in the country maybe in the world, I guess, and they're going to pay back that money."
Small business owners are also frustrated that large companies are taking the money meant to help their livelihoods survive the pandemic.
“The funds are not being properly allocated," said Michelle Cook, who owns Chic'tigue boutique near downtown San Antonio. "Most of these the funds are going to bigger businesses, to big chains."
Cook says she’s been selling clothing online, but business has been slow. She said most small business owners put everything they have back into their business.
“A lot of the small businesses – the mom-and-pop shops – are based on savings, on lifetime savings,” she said. “I honestly don't think most businesses, especially small business, are going to survive.”
After the backlash, Shake Shack announced they were returning the loan money after securing other funding.
Harvard University responded to the criticism in a tweet on Wednesday saying “Harvard will not accept funds from the CARES Act Higher Education Emergency Relief Fund. Like most colleges & universities, Harvard has been allocated funds as part of the CARES Act. Harvard did not apply for this support, nor has it requested, received or accessed the funds.”
KENS5 reached out to Taco Cabana and their parent company, Fiesta Restaurant Group. A Fiesta spokesperson said the company wasn’t commenting on the issue.
Meanwhile the Trump administration is working with lawmakers to pass a bill that would replenish the small business fund with an estimated $310 billion.