Thanks for the input...I agree the details are pretty vague.  Since I have no first hand experience in this sort of thing, as I do in everything else, I suppose what may be the situation then test my suppositions. I would expect that the escrow or trustee thing would be pretty straight forward for professionals on tap to keep the funds at arm's length, since I can't see how money can be loaned to a company that has no income streams established.  The equipment investment credits have to be money in the bank from the government in less than a year, and they stand as security for the loan, the security has to be protected by some similar mechanism IMO.