Axios announced Tuesday that it will be returning the government Paycheck Protection Program loan designed to help the company avoid layoffs, reports The Wrap.

The decision comes as the company nears “a deal for an alternative source of capital.”

Founder and CEO Jim VandeHei wrote:

“In the four weeks since Axios applied for the loan, based on big coronavirus business losses, there has been a public backlash against a variety of companies for taking the PPP, including us.

“Some critics say media companies like ours should not qualify, period. Others argue that venture-backed start-ups should seek capital elsewhere, even if it hurts the business.

“We remain fully committed to protecting the jobs of all 190 existing employees.”

He concluded by saying that he hopes the return of the loan will “free up $4.8 million in loans for other small businesses still struggling to find capital.”

Mariam Ahmed

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