Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

Most people should and will accept free money from the government whenever it's offered. The CARES Act was designed to funnel trillions of dollars into workers' bank account and was written with the expectation that few people or businesses would say no to such a gift. Then the messaging changed.

Why it matters: Politicians lost no time in ratifying the anger and resentment aimed at some of the recipients of government-backed funds. The result has been a slew of businesses voluntarily rejecting government assistance.

Driving the news: The New York Times' Neil Irwin noted this week that "with stunning speed, the political conversation has pivoted from whatever-it-takes determination toward a different feeling: outrage."

The big picture: Legislation tends to be gamed, especially when it is written in a hurry. The government's Paycheck Protection Program, in particular, was the focus of a lot of anger after it became clear that relatively large and well-connected companies had managed to receive funding even as many very small — and even needier — businesses had been shut out of the first round.

  • By the numbers: In the initial tranche of the PPP, 44.5% of the money lent out — some $152 billion — went to businesses requesting more than $1 million. In the first week of the second round, by contrast, only 27% of the money went out in the form of seven-figure checks.
  • The average loan amount in the second round is $79,000, down sharply from $206,000 in the first round.

Between the lines: To some extent, the drop-off in average loan sizes is a function of the bigger recipients' ability to receive their money in the first round. But it's also a function of the fact that bigger businesses are listening to politicians, including Treasury Secretary Steven Mnuchin.

  • What they're saying: Mnuchin announced last week that the government would carefully scrutinize every PPP loan over $2 million before agreeing to forgive the money. What's more, he said, those businesses could face criminal liability. He concluded: "I encourage everybody to look at this and pay back these loans now, so we can recycle the money, if you made a mistake.”
  • No business wants that kind of government scrutiny, even if they are sure they qualify for the money.
  • It's easy for members of Congress to summon CEOs into public hearings designed to generate maximum negative publicity. If a CEO doesn't accept the money, she effectively avoids any risk of finding herself in that position.

For the record: Four of the top five businesses on the TrumpBailouts.org list of big recipients of PPP funds, put together by an anti-corruption watchdog group, have subsequently announced that they will be returning the money. Axios has done likewise.

  • Such announcements often come with a statement that "we have decided to return the loan with the hope it finds a home where it is more urgently needed," or words to that effect.
  • There's plenty of money left in the PPP coffers, however. The second $310 billion tranche of PPP money had more than $126 billion remaining at the end of Wednesday, with new loans in the second week so far amounting to just $7.8 billion. Fears that the money would be gone on Day One did not come true.

The bottom line: Jawboning works. Even when businesses are legally entitled to bailout funds, they will often avoid taking that money when faced with political or popular opprobrium.

Go deeper: How many big companies got PPP loans

Go deeper

Aug 14, 2020 - World

Lawmakers demand answers from World Bank on Xinjiang loan

Illustration: Sarah Grillo/Axios

U.S. lawmakers are demanding answers from the World Bank about its continued operation of a $50 million loan program in Xinjiang, following Axios reporting on the loans.

Why it matters: The Chinese government is currently waging a campaign of cultural and demographic genocide against ethnic minorities in Xinjiang, in northwest China. The lawmakers contend that the recipients of the loans may be complicit in that repression.

Updated 15 mins ago - Politics & Policy

"Believe your eyes": Prosecutors make closing arguments in Chauvin trial

Steve Schleicher, an attorney for the prosecution in Derek Chauvin's trial, began closing arguments on Monday by describing in detail George Floyd's last moments — crying out for help and surrounded by strangers, as Chauvin pressed his knee into Floyd for nine minutes and 29 seconds.

Why it matters: The jury's verdict in Chauvin's murder trial, seen by advocates as one of the most crucial civil rights cases in decades, will reverberate across the country and have major implications in the fight for racial justice.

Kendall Baker, author of Sports
5 hours ago - Sports

European soccer is at war

Liverpool celebrating its 2019 Champions League victory. Photo: Nigel Roddis/Getty Images

Europe's biggest soccer clubs have established The Super League, a new midweek tournament that would compete with — and threaten the very existence of — the Champions League.

Why it matters: This new league, set to start in 2023, "would bring about the most significant restructuring of elite European soccer since the 1950s, and could herald the largest transfer of wealth to a small set of teams in modern sports history," writes NYT's Tariq Panja.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!