15 LOAN GUARANTEES PENDING
Officials hope to approve more loan guarantees
Kevin Freking, September 15, 2011 (AP via Yahoo News)
"The Obama administration is moving to finalize as many as 15 loan guarantees for renewable energy companies before the stimulus program ends on Sept. 30, and Republicans are questioning whether that could lead to more failures like Solyndra Inc., a company that filed for bankruptcy and may leave taxpayers on the hook for a half-billion-dollar loan.
"The loan guarantees essentially make it easier for the companies to get financing as the government guarantees repayment in the event of default. In Solyndra's case, the loan came from the government itself, but private banks often provide the financing."
"A spokesman for the Energy Department said the department won't take any shortcuts during the approval process…
"A congressional subcommittee is examining the loan guarantee program…[T]he White House Office of Management and Budget…[may have been rushed to approve] a loan guarantee for Solyndra, a California manufacturer of solar panels. The company is also the subject of an FBI investigation…"