The recent $700 billion bailout is not completely a loan...unlike anything we've seen before. The recent bailout financial institutions received includes a government stake in the company and while partial loans were floated to banks to reverse the poor credit market those companies that were essentially (or in some cases declared) bankrupt were revitalized with government buy-ins. Some of the money was earmarked to be used to extend credit to consumers while some was destined to simply reverse debt and cover FDIC insurance for lack of funds to cover it.
Neil...I think we're moving in the direction of minimum mpg standards for vehicles. After rejecting GM's recent request for $10 billion to assist with the Chrysler merger the government countered with the speeding up of a $25 billion package for the development of fuel efficient vehicles. That $25 billion is a straight loan. Story below...
U.S. rejects GM's call for help in a merger - International Herald Tribune