Doe Response!

[raptor213]

As I understand it, Elio Motors' business checking account might never see any ATVM funds anyway.

I thought I had read that the money is disbursed from the coffers of the DoE ATVM loan guarantee consortium of private lending institutions to the attention of suppliers who are owed monies for products, parts, tooling, labor, and other services rendered on behalf of Elio Motors. Elio Motors would be on the hook for repayment to the DoE, obviously, but they couldn't scam the system by securing loan approval AND receiving the funds -- unless, of course, shell companies with Elio board members directly involved billed to and received loan funds directly from the ATVM loan program office.

Example: Elio Motors, Inc. secures loan approval, then ESG Engineering dba, of which Paul Elio is majority stakeholder, bills to and receives funds from the ATVM loan program office.

 

[Rob Croson]

... $ 370 million eventually and totally required...

Another point to keep in mind, that I see people always missing: The $370M required for EM to begin rolling cars off the line includes just under $100M that has already been committed by EM's suppliers to begin their startup operations. So EM does NOT need $370M in cash to begin producing our beloved three-wheelers. They need $280M. Their suppliers will expend ~$90M of their own funds to begin making parts. (Over half of which will be Linamar to start making the engines.) Of that $280M, EM is hoping for ~$180M from the DoE. Assuming (ha!) that they get the DoE loan, that leaves them needing only $100M, of which they say they only need $25M to start.

So, yeah, technically it will cost $370M to get the Elio into production.

But all EM needs is the DoE loan, and $100M. If they get the DoE loan, I think we can be pretty sure the other $100M will find it's way into their bank account.

 

[Elio Amazed]

So EM does NOT need $370M in cash to begin producing our beloved three-wheelers. They need $280M. Their suppliers will expend ~$90M of their own funds to begin making parts.

I don't think so.

Linamar is going to risk $45M of it's own money on Elio Motors?
Paul has been saying "We need" $370M to start production.
I think we definitely need verification links on this one.

 

[Johnny Acree]

I know why EM can't get any money out of the Gov. Elon Musk is hoggin it all up.
Of course it is just a verbal agreement, and we know how those go.

 

[W. WIllie]

OJ getting his parole reminds me of what EM is going through with the govt. to get a loan.

 

[Sailor Dog]

April 24 has been a while...is this to work in coordination with the Autocycle Legislation working it's way through Congress NOW!!! BIPARTISAN SUPPORT...USA AUTOCYCLE FOR US AND THE WORLD!!!

 

[raptor213]

https://www.appropriations.senate.g...ater-development-appropriations-bill-advances

The Senate Appropriations Committee on July 20, 2017 completed final markup of the FY2018 Energy and Water Development Appropriations bill, advancing it to be voted on by the full Senate.

Of interest to Elio Motors, the bill includes the following statement on page 30 of the bill:

"ADVANCED TECHNOLOGY VEHICLES MANUFACTURING LOAN PROGRAM

For Department of Energy administrative expenses necessary in carrying out the Advanced Technology Vehicles Manufacturing Loan Program, $5,000,000, to remain available until September 30, 2019."

Without venturing too deep into political commentary, the Committee members voted 30-1 in favor of the final markup of the bill, which "totals $38.4 billion, $629 million above the FY2017 enacted level and $4.1 billion above the President’s request." Rather than an overall 12% cut, they opted to maintain many existing programs and requested 1-2% more than what had been enacted last year. More specifically, the Committee opted to fund the ATVM Loan Program Office at the Department of Energy rather than close its doors, per the White House administrations budget blueprint.

Assuming the full U.S. Senate passes the bill without significant amendment, the Dept of Energy's ATVM Loan Program Office is not shutting its doors and has $5M in appropriations to cover administrative expenses through September 2019. Of the initial $25 Billion in loan guarantee funds allocated to the ATVM program, an estimated $16 Billion is yet to be approved for disbursement.

Cue the renewed anxiety over whether or not Elio Motors' pending loan application for $186 million stands a shot at seeing daylight.

 

[raptor213]

https://www.appropriations.senate.g...ater-development-appropriations-bill-advances

The Senate Appropriations Committee on July 20, 2017 completed final markup of the FY2018 Energy and Water Development Appropriations bill, advancing it to be voted on by the full Senate.

Of interest to Elio Motors, the bill includes the following statement on page 30 of the bill:

"ADVANCED TECHNOLOGY VEHICLES MANUFACTURING LOAN PROGRAM

For Department of Energy administrative expenses necessary in carrying out the Advanced Technology Vehicles Manufacturing Loan Program, $5,000,000, to remain available until September 30, 2019."

Without venturing too deep into political commentary, the Committee members voted 30-1 in favor of the final markup of the bill, which "totals $38.4 billion, $629 million above the FY2017 enacted level and $4.1 billion above the President’s request." Rather than an overall 12% cut, they opted to maintain many existing programs and requested 1-2% more than what had been enacted last year. More specifically, the Committee opted to fund the ATVM Loan Program Office at the Department of Energy rather than close its doors, per the White House administrations budget blueprint.

Assuming the full U.S. Senate passes the bill without significant amendment, the Dept of Energy's ATVM Loan Program Office is not shutting its doors and has $5M in appropriations to cover administrative expenses through September 2019. Of the initial $25 Billion in loan guarantee funds allocated to the ATVM program, an estimated $16 Billion is yet to be approved for disbursement.

Cue the renewed anxiety over whether or not Elio Motors' pending loan application for $186 million stands a shot at seeing daylight.

I was skeptical of my own jubilation, so dug deeper. Being politically savvy, I realized the potential was there for the Committee to fund the ATVM loan program office with only sufficient administrative expense appropriations to wind down the program. So I investigated what the office was granted last year for FY2017. It turns out their funding hasn't changed; they requested and were granted $5 Million in FY2017 and the same appears to hold true for FY2018. That nixes any potential suspicion that the office just has enough money granted to cease operations over the course of the next year.

Source: https://www.congress.gov/congressional-report/114th-congress/senate-report/236

"Advanced Technology Vehicles Manufacturing Loan Program

Appropriations, 2016... $6,000,000
Budget estimate, 2017... $5,000,000
Committee recommendation... $5,000,000

The Committee recommends $5,000,000 for the Advanced
Technology Vehicles Manufacturing Loan Program, the same as the
request."

 

[pistonboy]

Thank you raptor 213.

You do good work.

 

[LillyMayPatterson #1685 & #5648]

Whoa, great news. Thanks for the digging raptor. I keep saying "This is going to work! It's in the cards.".
What, the Senate will vote for this and then what? This came out Saturday. I wonder if it will affect the stock market Monday? How soon can we expect the senate vote. Doesn't the President have to sign this?