Government Shutdown Is Hurting Franchisees: Fat Brands CEO
*By Christian Smith*
As the partial federal government shutdown enters enters its 27th day, American businesses are beginning to feel the strain.
For Fat Brands Inc. ($FAT) ー which owns a number of fast food brands Fatburger, among them ー the consequences of the shutdown are slowly trickling up to corporate, but president and CEO Andy Wiederhorn said franchisees are thus far bearing the brunt of the shutdown.
"I think it's really much harder on the franchise operators because they're trying to build stores they've already started to build, or they've got a lease signed up and now they need their loan to get going for construction," Wiederhorn said Wednesday in an interview with Cheddar.
With the Small Business Administration closed, small businesses are unable to access SBA-backed loans. The SBA usually manages over 300 loans each day, which [The Washington Post](https://www.washingtonpost.com/business/2019/01/11/congresswoman-calls-trump-restart-small-business-lending-level-anxiety-is-unprecedented/?utm_term=.f50572777f74) reported amounts to roughly $200 million worth of loans for small and midsize businesses.
Small business owners in need of capital during the shutdown must turn to other sources of funding, such as non-SBA-backed loans, which generally come with higher interest rates.
But Wiederhorn noted that every sector of business ー even the major players ー is experiencing negative side effects.
"It's affecting everybody, not just small business, but large business," he said. "It's really very difficult."
For full interview [click here](https://cheddar.com/videos/fat-brands-inc-ceo-explains-how-the-government-shutdown-is-impacting-americas-small-businesses).
President Joe Biden named Jerome Powell, initially appointed by President Trump, to keep his seat as the chair of the Federal Reserve on Monday amid the ongoing challenges of the pandemic, inflation, and unemployment. David Beckworth, a former international economist for the Treasury Department and a senior fellow with the Mercatus Center, joined Cheddar to discuss what he sees as the practicality of Biden's decision. "What Powell brings to the table is he's built up political capital with Republicans and Democrats," he said. "It's easy for him to get the job done. I think in one way he was the path of least resistance for the president."
In a surprise turn of events, Elizabeth Holmes took the stand in her own defense on Friday and is expected to continue her testimony later today. Holmes, who founded a blood testing start-up Theranos back in 2003, faces 11 counts of wire fraud as well as conspiracy to commit wire fraud. Aron Solomon, Chief Legal Analyst, Esquire Digital joined Cheddar's Opening Bell to discuss.
Jill and Carlo cover the developing story out of suburban Milwaukee, where a speeding SUV careened through a Christmas parade. Looters get more brazen in San Francisco, the missing Chinese tennis star resurfaces, and more.
Michael Tubbs, former Mayor of Stockton, California and author of 'The Deeper the Roots,' joined Cheddar Movers to talk all about his new memoir, and his ongoing fight to make meaningful change in his community.
The House narrowly passed President Biden's $1.7 trillion Build Back Better bill, the largest expansion of the social safety net in decades. The final vote was 220 to 213, with only one Democrat joining all Republicans in opposing the bill. It now heads to the Senate, where it faces an uncertain fate. Jennifer Haberkorn, congressional reporter for the Los Angeles Times, joins Cheddar News' Closing Bell, where she breaks down the current version of the bill, where it goes next, and what it could mean for the country if it eventually reaches the president's desk.
Two murder trials in focus in America — Wisconsin V. Kyle Rittenhouse and Georgia V. Travis Mcmichael, Gregory Mcmichael, and William Bryan, the Men who killed Ahmaud Arbery. Civil rights and criminal defense lawyer Anthony Tall and the Founder and CEO of Kim Crowder consulting Kim Crowder, joined Cheddar to discuss more.
Rep. Ruben Gallego (D - Arizona) joined Cheddar to discuss the passing of President Biden's Infrastructure Bill and his new book, 'They Called us 'Lucky,' about his time serving in the Iraq War.
