Is SoloPower the Next Solyndra?
Should the government be in the business to be in business? Can we afford to offer huge taxpayer backed loans to companies? If we are borrowing billions just to pay our own bills can we afford to be in the loan business?
Yet another solar company is headed for bankruptcy. This, just six months after receiving a government guaranteed 197 MILLION dollar taxpayer backed loan. In September 2012 Reuters reported on the similarities between this start-up company and the now well-known, and failed, Solyndra. Have we learned nothing?
In February SoloPower acknowledge that it was already restructuring through layoffs and selling off equipment.
In my neighborhood last summer a new restaurant opened with great fanfare. It was an all-you-can-eat buffet filled with fresh seafood. Located in the middle of the desert it offered a unique menu. Its opening took away business from several other area restaurants causing at least one to close. Their inexpensive meals caused some to wonder how they were managing to import seafood in a cost effective manner because we are not near the beach. Sad to say, in less than six months the doors were shuttered, first with a note of reorganization, then one of non-payment of rent. Their business plan did not pan out and investors lost their financing money. Still, they were privately owned. Only those willing to take a risk lost money.
So, why is the government putting up all this money to a business without a solid plan? One hundred and ninety-seven million dollars is not pocket change. What government official approved this giant loan? Is our country in such a position that we can risk these huge amounts of money? It is expected that taxpayers will get only 19% of $142 million and virtually none of the remaining $385 million loan money from Solyndra. Maybe it’s time that the government get out of the business of being in business and leave risky start-ups to those who can afford the loss.
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