Banks set their own criteria of whom to lend to‚ and were incentivized to choose large clients over small businesses. Lawsuits have been filed against financial giants like Wells Fargo and Bank of America for putting big corporations first and leaving small businesses out of the program. Public outrage over large corporations receiving big payouts, resulted in some companies like Shake Shack to return their $10 million loan. This is very different from the franchisee of a single restaurant: a small business owner that licenses a brand. Until there are more specific guidelines, the Small Business Administration will continue to let banks set their own criteria.

Source: Forbes May 05, 2020 14:26 UTC