IG: Criticism of U.S. Over Solar Business Loan Default

Posted April 18, 2014 at 5:10am

The New York Times reports that “long before the Energy Department lost $68 million on Abound Solar, a manufacturer that went bankrupt two years ago, it should have known that the company’s chance of repaying the loan it had guaranteed was deteriorating, according to a report by the department’s inspector general.”  

“The damning report was issued as the Obama administration prepared to offer as much as $8 billion in additional loan guarantees.”  

“The loan guarantee program has been a magnet for criticism since the failure of Solyndra in 2011; that company took $528 million in loans guaranteed by the Energy Department.”  

“The new report, released on Thursday, focused on loan guarantees extended to Abound Solar, which was initially offered $400 million. When the company missed several production milestones, the department cut off the loan guarantees, limiting the loss to taxpayers.”