Proterra Inc., the electric bus maker touted by President Joe Biden that filed for bankruptcy this week, was the recipient of millions of dollars in COVID relief government aid.
The Burlingame, Calif.-based company was awarded a $10 million loan from the Paycheck Protection Program in 2020 that was forgiven in May 2022, according to a company filing Aug. 9.
The COVID relief aid came on top of other federal government incentives and support for the electric bus industry more broadly, as well as repeated shout-outs for the company from Biden.
Energy Secretary Jennifer Granholm served on Proterra's board from 2017 until she became secretary and sold her stock in the company in May 2021, providing her with a net capital gain of $1.6 million following criticism from the GOP. Biden, Apr.
The company filed for Chapter 11 bankruptcy protection in Delaware Aug. 7, saying in a statement it was facing "Market and macroeconomic headwinds." The company, which said it plans to either recapitalize its businesses or sell them off, has seen its shares plunge 90% since the announcement.
A spokesman for Proterra said the loan "Supported our ability to maintain a full workforce as we navigated the uncertainty caused by the COVID-19 pandemic."
In its SEC filing, Proterra said it expected the billions of dollars in funding for electric buses would "Remain an important factor in our company's growth prospects," but didn't note receiving any funding from either the infrastructure or climate laws directly.
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