Loans

Byton and Karma Automotive among companies that received COVID-related PPP loans

EV firms Byton, Karma Automotive and Nio all received between $5 and $10 million in aid after joining the US PPP program.

In an attempt to save small businesses from falling victim to the economical side effects of the coronavirus recession, an economic downturn predicted to be the worst since the Great Depression of the 1930s, the US Small Business Association launched the Paycheck Protection Program which accepted applications until July 6. 

Also on July 6, the US Treasury released a list of companies which benefited from the program by receiving loans of $150,000 or more; the EV start-ups Byton, Nio, and Karma Automotive all got between $5 million and $10 million to keep their head above water.

Unfortunately for these companies, even millions of dollars couldn’t keep them in the clear. Last week, Byton announced that operations will be suspended for at least six months due to the outbreak;

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Auto-Parts Makers Seek U.S. Loans to Fuel Industry Restart

(Bloomberg) — Auto-parts manufacturers are lobbying for access to federal loans so they can resume making the components necessary for U.S. automobile assembly plants to begin producing cars once more.

The details of such a program, including its size, are still being discussed with lawmakers, but the loans are needed to help cover the initial raw materials purchases and other costs of producing parts after a roughly six-week period of almost zero revenue from components used in new vehicle production, according to Ann Wilson, senior vice president of government affairs at the Motor & Equipment Manufacturers Association.

“We have not produced a light duty vehicle in this country for almost 45 days. That means that the supply base has no money coming in,” she said. “What our industry is interested in is a program of short duration that can provide that necessary funding to the industry so we can get

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