The controversial loan guarantees

October 3, 2012

"You put $90 billion into -- into green jobs," Mitt Romney said. "And I -- look, I’m all in favor of green energy. $90 billion, that would have -- that would have hired 2 million teachers. $90 billion. And these businesses, many of them have gone out of business." 

The controversial loan guarantee program Romney cited in the debate provided $16.1 billion in loan guarantees. As of May, that represents about 1.7 percent of the almost one trillion dollars of existing federal loan guarantee commitments.* Defaults from Solyndra and Beacon, according to congressional testimony, are likely to net out to $300 to $400 million -- roughly 2 percent of the amount guaranteed. 

The amount defaulted is still well below the $2.47 billion Congress budgeted to cover expected defaults and partial defaults. About $14 billion of the loan guarantees didn't go to support individual companies but to support large scale wind or solar generation projects based on proven technologies. 

*This post inaccurately described the default rate as 1.7 percent; it is actually the share of all loan guarantee commitments this program represents.

More on the rest of the $90 billion here.

Steven Mufson covers the White House. Since joining The Post, he has covered economics, China, foreign policy and energy.
Comments
Show Comments
Most Read Politics
Next Story
Josh Hicks · October 3, 2012