Irvine-based Kura Sushi USA Inc. (Nasdaq: KRUS) said Wednesday it will return $5.98 million it received through the federal government’s Paycheck Protection Program.
The company made the disclosure in a filing with the Securities & Exchange Commission.
Kura Sushi earlier this month disclosed it applied for the program.
The company, in response to the pandemic, temporarily closed its 25 restaurants, furloughing workers while still providing health insurance.
It noted earlier this month, at the time of its second-quarter report, the business had a strong balance sheet with cash or cash equivalents of about $24 million and no debt. Majority shareholder Kura Sushi Japan had provided a $20 million revolver to the chain April 10, which had not yet been tapped as of April 14.
The PPP loan, procured through Bank of the West, was not used, Kura Sushi said.
Appropriations for PPP loans, offered under the Coronavirus Aid, Relief and Economic Security Act, ran empty last week as businesses across the country clamored for the aid.
Public companies, who received funds through the program, have drawn attention in more recent days as some argue the PPP monies were not intended for publicly-traded firms with alternate access to capital.
Within the restaurant industry, Shake Shack (NYSE: SHAK) this week said it will return $10 million granted under the program. A petition began circulating to have Ruth’s Chris Steak House (Nasdaq: RUTH) return its $20 million in PPP funding.
Congress this week looked set to add funds for a second round of lending. The Senate reached a deal on a new injection of PPP funding Tuesday, sending it to the House of Representatives for approval, expected Thursday.
Go here for more updates on OC companies' responses to the coronavirus.
For ongoing, in-depth coverage of the coronavirus' effects on OC businesses, see the Monday print edition of the Business Journal.