SOLYNDRA GOT $535 MILLION LOAN GUARANTEE AND IS EXPERIENCING SERIOUS FINANCIAL PROBLEMS
 

Washington, Mar 14 -

Under the Energy Policy Act of 2005 and the Stimulus Bill, the Department of Energy (DOE) is authorized to make loan guarantees to companies investing in clean technologies or renewable energy projects.  “Our information indicates that DOE has committed over $26 billion to loans or loan guarantees for 23 clean energy projects,” stated Rep. Cliff Stearns (R-FL), Chairman of the Oversight and Investigations Subcommittee for the Energy and Commerce Committee.  “This includes a $535 million loan guarantee for Solyndra, Inc. of Fremont, California, for the construction of a new solar panel manufacturing facility.  Since this guarantee, Solyndra has suffered a number of financial setbacks and has experienced problems with cash flow.”

The Office of Management and Budget (OMB) reviews these loan guarantees and approved the guarantee for Solyndra.  Stearns today requested that OMB provide all the documents it has relating to the loan guarantee for Solyndra. 

“I am concerned that the DOE is providing loans and loan guarantees to firms that aren’t capable of competing in the global market, even with government subsidies,” added Stearns.  “I also question the competence and judgment of companies such as Solyndra that receive government support and still struggle financially.”