Congressional overview of green-energy loans

Renewable energy corporations have been getting help through Congress going back few years. The Department of Energy has been administering helpful programs. Through funding committed through the American Recovery and Reinvestment Act, the DOE guaranteed green-power companies' loans. The truth that not all of these corporations succeeded has some Congress individuals worried. An investigation has been opened to see if the funds were used correctly. These loans have helped numerous individuals get the assistance they need without a personal loan. Post resource - Congressional commission investigating clean-energy loan promises by MoneyBlogNewz.

Green energy loans

Support has been given to clean-energy projects by the DOE. Loan guarantees are given as this support. Rather than directly giving the projects loans, the DOE has been providing federal guarantees for bad credit loans to these companies. It states, more or less, the government will get payments to the lender whether or not the business actually repays the loan. There are many projects getting the green energy loans. Solar power in Reno, Nevada, and Solyndra Inc. in California can be getting them.

Solyndra Inc investigated by Congress

The bad credit loan guarantees for clean-energy weren’t all good though. The DOE had something unexpected happen. About $500 million was promised to Solyndra Inc. by the DOE. This was intended to go to a second plant which would mean 1,000 more jobs. Solyndra also prepared on making an initial public providing within a few months of the loan going through to help raise capital to pay back the loan. After an auditor warned that company did not have the revenue necessary to support the Initial Public Offering and revenue didn't outpace costs, however, Solyndra had to roll back its plans for expansion. There have not been any closures for the company yet. Also, the government has not had to pay any of the $500 million loan guarantee back yet. An investigation into the guarantee was opened up by House energy and Commerce Committee Chairman Fred Upton (R-Mich.).

Money from the stimulus researched

The House Energy and Commerce committee thinks the exploration will turn out to be more into green energy loans in general rather than just into Solyndra Inc. Every business won’t succeed with the guaranteed loans though, as pointed out by supporters of green-energy. It shouldn’t be anticipated that they do. Even though the government has not paid anything yet, most are upset they guaranteed the loans in the first place. They say the government has no business doing it.

Articles cited


The Hill