How will Solyndra affect small business loans?
Experts discuss what the government can do to ensure it is investing in small businesses that are viable.
Loans need to be completely insulated from the political process. No politician ought to be able to influence or contaminate it.
The government watchdog who first raised concerns about the federal loan program used to finance the now-bankrupt solar company Solyndra said Wednesday that the Energy Department was ill-equipped to quickly distribute billions of dollars in economic stimulus funding.
Solyndra’s collapse notwithstanding, our nation’s early investments in the solar industry have begun to pay off. The U.S. solar industry grew 69 percent in 12 months representing the fastest growing industry in the nation.
I am concerned that the direction of this scrutiny will be the over regulation of these guaranteed loan programs — thus rendering them unusable by the companies most in need of them.
To me, the guaranteed loan program and Solyndra mess indicate that too much emphasis was placed on the dollars and not enough on guidance.
When I read about the Solyndra $500 million loan failure, I don’t think about why it failed — I ask how did it obtain the loan in the first place? I can’t seem to get a $5,000 loan — let alone $500 million.
What would have happened if the SBA or another federal agency — instead of funding Solyndra — had guaranteed 10,000 high risk $50,000 loans for new small businesses? You’d create 10,000 jobs immediately — roughly 10 times those who worked at Solyndra.
It would be extremely shortsighted for the federal government to reduce or abandon its support for the U.S. solar industry as a result of the failure of one solar manufacturing company.