So from what I am getting out of reading into this scandal, The government lent out half a billion dollars to a company creating an alternative to silicone solar panels. Seems like a really good idea considering we need to start investing in green energy and it was supposedly going to create over 4,ooo jobs and start getting the green jobs economy going. Apparently it did not go according to plan….
In 2005 the “Energy Loan Act” had agreed that the government was going to lend out loans to companies trying to get green energy companies up and running for the United States. This was done during the Bush administration, several companies applied for the loan and Solyndra was one, they were told they would not get the loan because they were not in a goof financial place for it, but to keep applying until they were.
Solyndra continued to apply, and when Obama was in house, they loan was approved. The department of energy and office of management and budget questioned on this loan saying that the companies cash flow was a major outstanding issue, and they did not believe they were going to be able to pay back the loan.
In August 2011 the company filed for chapter 11 (bankruptcy) and laid off more than 1,100 employees. The company seized all manufacturing and operations.
