Quote:
Originally Posted by ME_Andy
I'm sure the $185M Advanced Technology Vehicle Manufacturing loan is the biggest chunk of that.
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Which in itself automatically disqualifies Elio for that loan.
Short version = If you need it you don't qualify.
Here are a few excerpts of the loan requirements I see as being significant obstacles for Elio:
- "The applicant has a net present value which is positive, taking all costs, existing and future, into account."
- "The Secretary shall provide facility funding awards under this section to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of— reequipping, expanding, or establishing a manufacturing facility in the United States to produce— qualifying advanced technology vehicles."
- "financial projections demonstrating the applicant’s solvency through the period of time that the loan is outstanding."
#3> This is a hard sell ... it's a new company .. with a new (unproven) product type ... and their aim is for 50,000+ units per year... Proving that there are over 50,000+ people who will buy the unknown product from the unknown company for the multiple years of the loan ... that will be hard.
#2> Sense 30% is the max .. and they want $185 Million ... that means they have to prove they already have over the other 70% about ~$370 Million ... Which they don't have.
#1> AFAIK I doubt Elio at present is net positive at all ... especially taking all those costs in the future into account ... I'm sure they would like to reach that point in the future ... but , the loan requires them to be net positive for all those future costs at present = today ... Today they have to be net positive (able to afford) after repaying the loan itself , and any other loan , and employee wages, parts, etc... etc ... for the future period of the loan... They do not met this requirement.