Fast casual food chain CAVA gets up to $10 million PPP loan after raising $40 million last year
CAVA did not respond when asked for the exact amount of the loan or if the company plans to pay any of it back
CAVA grill, a fast casual Mediterranean restaurant chain based in Washington D.C., obtained a $5 million to $10 million forgivable taxpayer-funded Paycheck Protection Loan after raising $40 million from investors as of December 2019.
CAVA’s $40 million funding round was reported on the company’s latest securities filing.
According to press reports in December 2019, CAVA had raised “a total of $459.22 million, per Pitchbox, a company that lists the Mediterranean conglomerate’s valuation at $578.67 million.”
CAVA’s coronavirus stimulus loan was disclosed when the Small Business Administration released loan data this week. The $5 million to $10 million loan is the highest amount of loans issued on the list of recipients. CAVA did not voluntarily disclose the loan in advance of the SBA release of the data.
CAVA did not respond when asked for the exact amount of the loan or if the company plans to pay any of it back.
According to the SBA, the Paycheck Protection Program loans, which are part of the $2.2 trillion CARES Act, are forgivable if "at least 60 percent" is put toward payroll. The rest can apply to qualified expenses such as rent and utilities.
CAVA restaurants located in the Washington D.C. metro area are open for pick-up and delivery but not for dine-in.