[offtotheraces]

Loans get issued based on profit generation (or asset value), so no, it is not “to keep them afloat”. You can’t get a loan if your company is not doing well or too risky (that’s why startups raise equity - because they are still too risky for someone to lend them money).

A loan is a form of debt, which is one of the two main forms of capital - the other main one being equity. Debt is less expensive than equity, so companies prefer to issue to raise capital via debt than equity.

[throwawayqqq11]

Its not just profit that is considered for a loan. Anything related to states is more stable and thus less risky. Or how would you evaluate state bonds by profit only? Elon knows what i am talking about.