**Written by Doug Powers
Why not? We’re only about $16 trillion in debt.
From the New York Times:
Six months after the expiration of a federal loan guarantee program that backed $16 billion in loans to solar, wind and geothermal energy projects, the Energy Department has decided to offer a smaller set of similar guarantees by tapping another pot of money appropriated by Congress last year.
The department said Thursday that it had sent letters to potentially eligible companies inviting them to apply for the new money.
Under the other program, which was passed as part of the 2009 stimulus legislation, about three dozen companies that had applied for loan guarantees were told that they would not receive guarantees because the department had been unable to finish reviewing their applications before the program expired on Sept. 30, 2011.
The money being handed out in this round is attached to the Energy Policy Act of 2005, with the exception of the upfront fee, which will also be subsidized:
Usually, applicants under the 2005 program have to pay a fee upfront, called a credit subsidy, to compensate the government for the risk it runs by guaranteeing such a loan. Those fees can be costly, and few companies have applied. But the Energy Department said on Thursday that it had $170 million, approved under the budget deal of April 2011, that it would use to pay all or part of those subsidies.
That would make the 2005 program more like the loan guarantee program financed by the American Recovery and Reinvestment Act of 2009, in which the government paid the subsidy.
According to the NYT, the loan amounts are “likely to run into the hundreds of millions of dollars.”
If you want to go for a loan, the letter the DoE is sending out with information on how to get yours is here (PDF).
Hopefully they approve my application for a $500 million loan to kick-start my idea for an algae-producing bio-fuel company called “Unkempt Aquarium Solutions.”
**Written by Doug Powers
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