They don't have to take the govs money. They can go to private investment firms and get funding. So... Why don't they?

Because private funding groups put the same conditions on the companies they fund as the gov is planning on AND they tend to fire most of the current management. Then they put in their own people to make sure the company is not just looted of the additional funding.

Companies are not taking the Feds money because it is their only choice; they are taking it because it is their cheapest source. If they cannot live with the conditions the lender of their choice puts forth...

I say let them seek private funding and then start looking for a new job. How many do you think will do this. I would bet not many.