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GM loans $40M to electric truck startup buying its shuttered Ohio plant

General Motors Co. has agreed to loan electric truck startup Lordstown Motors Corp. $40 million in financing to help it buy the carmaker's shuttered Lordstown Complex, an assembly plant in Ohio, The Business Journal reported Dec. 9, citing legal documents.

The loan agreement follows the sale of the facility to the electric truck startup Nov. 7. Financial terms of the deal were not disclosed at the time, but the newspaper — citing records from the Trumbull County Auditor — reported that the plant was sold for $20 million.

The Lordstown Complex covers 6.2 million square feet of factory space. GM shuttered the plant in March after ending production of the Chevrolet Cruze as part of the automaker's restructuring plans.

The report said Lordstown Motors will be allowed to borrow up to $50 million from GM, if necessary, to cover the purchase of the plant and some initial startup costs at the facility.

A spokesman from GM reportedly told The Business Journal that the company "structured the terms of the sale to allow [Lordstown Motors] to begin work at the plant without delay because they're still in the process of their capital raise."

The spokesperson reportedly added that GM expects Lordstown Motors to repay the loan once it has raised sufficient capital for the project.

Workhorse Group Inc., which offers battery-electric vehicles and aircraft in the U.S., owns 10% of Lordstown Motors.