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A politically connected solar company that pocketed a half billion dollar government loan, only to shutter its doors, fire workers and file for bankruptcy, secured an interest rate lower than other green energy projects, iWatch News and ABC News found -- one in a string of benefits the Obama administration doled out in bankrolling the project.
Now, the government's agreement with the company compels taxpayers to take a back seat to a venture fund associated with a key Obama fundraiser in trying to collect on the debt. Investors who put in $75 million would be repaid first; some $150 million of the government's $535 million would be next in line, according to the Energy Department's agreement with the company.
The $535 million loan to Solyndra Inc., issued by the Treasury Department's Federal Financing Bank as part of the Obama administration's stimulus to create jobs and spur development of green energy, included a quarterly interest rate of 1.025 percent, the government bank reported in July. Of 18 Energy Department stimulus loans cited in the bank's report, Solyndra's rate was lowest. Eight other Energy Department projects, each also backed by the Federal Financing Bank, came with rates three or four times higher, the report shows.
read more The Center for Public Integrity: Politically-connected solar firm secured low interest government loan before collapsing
Now, the government's agreement with the company compels taxpayers to take a back seat to a venture fund associated with a key Obama fundraiser in trying to collect on the debt. Investors who put in $75 million would be repaid first; some $150 million of the government's $535 million would be next in line, according to the Energy Department's agreement with the company.
The $535 million loan to Solyndra Inc., issued by the Treasury Department's Federal Financing Bank as part of the Obama administration's stimulus to create jobs and spur development of green energy, included a quarterly interest rate of 1.025 percent, the government bank reported in July. Of 18 Energy Department stimulus loans cited in the bank's report, Solyndra's rate was lowest. Eight other Energy Department projects, each also backed by the Federal Financing Bank, came with rates three or four times higher, the report shows.
read more The Center for Public Integrity: Politically-connected solar firm secured low interest government loan before collapsing