Congressional overview of green-energy loans

For the last two years, the DOE has been providing a monetary bit of support to clean-energy companies. The DOE took on a cosigner-like role for several green energy businesses. The total amount of these guarantees results in billions. One congressional committee has started an investigation to see if the funds were used in an appropriate manner. These loans have helped numerous people get the assistance they need without a personal loan. Source for this article – Congressional commission investigating clean-energy loan promises by MoneyBlogNewz.

Department of Energy with clean energy loans

Loan guarantees have been given to clean-energy projects by the DOE in support. The loans aren't given directly from the DOE. Instead, the DOE gives federal guarantees for bad credit loans for the businesses supported. If a company does not pay back the loan, the government will do it instead. That is what the agreement means. These green energy loans went to a variety of projects, including solar power in Reno, Nevada, and Solyndra Inc. in California.

Congress investigates Solyndra Inc

The bad credit loan guarantees for clean-energy weren't all good though. The DOE had something unexpected take place. 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. In order to get money to pay back the loan, Solyndra planned on making an initial public offering in a few months. After an auditor warned that company did not have the revenue necessary to support the Initial Public Offering and revenue did not outpace costs, however, Solyndra had to roll back its plans for expansion. There haven't been any closures for the business yet. Also, the government hasn't had to pay any of the $500 million loan guarantee back yet. However, House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) has opened an exploration to the guarantee.

Turns into an investigation of government stimulus money

The House Energy and Commerce committee thinks that the exploration will turn out to be more into green energy loans in general instead of just into Solyndra Inc. What several suggest as supporters of green-energy is that the government can't expect all of the guaranteed loans to succeed as every business with a traditional loan will make choices to succeed or fail. Opponents say that even though the government hasn’t yet had to put out any money, it should not be in the business of guaranteeing loans for green energy projects.

Articles cited

Reuters

af.reuters.com/article/energyOilNews/idAFN1717704520110217?pageNumber=2&virtualBrandChannel=0

The Hill

thehill.com/blogs/e2-wire/677-e2-wire/144895-upton-targets-doe-solar-loan-guarantee