I think they are just using stock premium to cover bad loans.
1. Business model is get loan out to anyone, sell that loan. Main buyer Garcia srs private company.
2. Selling these loans is very profitable and looks great on the balance sheet. Cash up front, liability off sheets.
3. Market loves ER pumps stock, huge premium paid by investors for every future dollar.
4. Garcia Sr can arbitrage this premium to cover the bad loans.
That would be my bet.