‘Shake Shack Loophole’ Stays Open, Spawns a Washington Whodunit

It’s a classic Washington whodunit.

No one wants to take the blame for the loophole that allowed name-brand restaurant chains like Shake Shack to get huge sums of pandemic-relief money meant for small businesses.

Lobbyists, lawmakers and agency officials deny responsibility. Yet fingers are pointing over how big national chains including Potbelly Corp. and Ruth’s Chris Steak House landed $10 million or more apiece in loans while millions of mom-and-pop firms were left stranded when the program ran out of money.

Many lawmakers now want the loophole closed with Congress poised to approve $320 billion of new funds this week, ...