Axios introduced Tuesday; it’s returning a mortgage is acquired by way of the Paycheck Safety Program (PPP) because it nears an alternate supply of funding.
The media outlet is famous in a post by CEO Jim VandeHei that it has come underneath criticism for accepting funds underneath the PPP and mentioned it was conducting its seek for further capital because the funds got herein.
“Axios, which certified for a federal Paycheck Protection Program mortgage to keep away from layoffs, will return the cash, after nearing a deal for an alternate supply of capital,” VandeHei wrote. “Within the four weeks since Axios utilized for the mortgage, based on massive coronavirus enterprise losses, there was a public backlash in opposition to quite a lot of firms for taking the PPP, together with us.”
VandeHei stated Axios had taken a monetary hit through the coronavirus pandemic, pointing to bodily occasions that have been scrapped and cancellations by advertisers.
The Axios CEO added that if the corporate had recognized it could have acquired funding outdoors, it “would have gutted it out and hoped for one of the best.”
Funds from the PPP have come below scrutiny after wealthy organizations like Shake Shack, and the Los Angeles Lakers obtained cash underneath the plan and had been then pressured handy it again to the federal government.
The PPP was established below the $2.2 trillion coronavirus aid package deal that was signed into legislation earlier this month. Forward of a brand new spherical of PPP funding, the Small Business Administration issued steerage supposed to discourage bigger corporations with entry to liquidity from in search of loans below it.