September 9, 2013
Another death in the infrastructural decay dilemma. Sustainability indicates that a different lens is required in loans disbursements. The typical big loan deals may not cut it in the new economy where big is not the rights of passage as historically. The new thumb is about loaning across platforms to harness potential sustainable companies on the economic landscape. Michigan is a moniker for probability of infrastructural downturns that can lead to catastrophic conditions. The intelligence that is gained from the “Energy Department loses $42M on loan to defunct Michigan company that made vans for disabled” is a forensic playground on sustainability strategies.
Daily Reporter offered, “The Energy Department said Friday it will lose about $42 million on a loan to a now-shuttered Michigan company that made vans for the disabled. Vehicle Production Group, or VPG, suspended operations in February and laid off 100 workers. The company had paid back $5 million of a $50 million federal loan this spring, and the remainder of its debt was sold at auction this week to Humvee manufacturer AM General, which paid $3 million to buy the Energy Department loan.”
“VPG, of Allen Park, Michigan, received a federal loan in 2011 under the same clean-energy program that provided a $529 million loan to electric car maker Fisker Automotive Inc. Fisker had received $192 million before a series of problems led U.S. officials to freeze the loan in 2011. The Obama administration has seized about $28 million from California-based Fisker, which has laid off three-fourths of its workers.”
Today, business aperture calls for new methods to allocate resource and validate business. The work is to review the companies sustainability strategy and not just financial ability to raise quick capital but the acumen to manage trends and understand their ecosystem. The loss of another sunk $42 million are 84 loans to of $500 k to small businesses that could result in overall growth, jobs and innovation.