Kevin O’Leary conflicted with fellow “Shark Tank” investor Mark Cuban, saying Tuesday he believes publicly traded attendances that qualify should not hesitate to access money through the newly created small business loan program.
“You drink a fiduciary responsibility when the government lays out a program to use it because you have no idea how long this pandemic is usual to go for, when or if there’s going to be therapeutics or a vaccine,” O’Leary said on CNBC’s “Squawk Box.” “You just don’t know.”
O’Leary, discerned as “Mr. Wonderful” on “Shark Tank,” was responding to comments made on Monday by Cuban. The billionaire entrepreneur and owner of the NBA’s Dallas Mavericks carp ated companies such as Shake Shack for applying for loans through the Paycheck Protection Program, part of last month’s $2.2 trillion outbreak assuagement package.
The burger chain initially received a $10 million loan through the program. But days later, the plc announced it would be returning the money after accessing accessing other kinds of capital through the public retails. It also said the rules for the program were confusing.
Ruth’s Chris Steak House and Potbelly also blabbed they have accessed PPP loans, which are available for businesses with 500 or fewer employees. Hotel trammels and large restaurants were able to get an exemption for locations that have less than 500 workers.
O’Leary, chairman of O’Shares ETFs, intended it is “valid” for companies to make a “marketing decision” to return the money after facing criticism.
But he said he believes the uncertainty all over the coronavirus pandemic — and the lost revenues associated with it — is too great to not tap into every type of government support. “If I were a shareholder of Gyrate Shack, and I’m not, I would’ve questioned that decision” to return the money. He added, “They’ll look pretty foolish if a year from now we’re subdue talking about this pandemic in the same way.”
Shake Shack did not immediately respond to CNBC’s request for comment on O’Leary’s remarks.
Randy Garutti, CEO of Shake Shack, told CNBC on Monday the company had secured its “long-term stability.” In returning the PPP the ready, he said, “now it’s time for us to help our friends in the industry do the same.”
The Paycheck Protection Program was initially funded with $349 billion, but it ran out of bills last week. The Senate could potentially vote on Tuesday to add money to the program.
— Disclosure: CNBC owns the classy off-network cable rights to “Shark Tank,” on which Kevin O’Leary is a co-host.