The Obama administration is pushing for renewables in the face of rising oil prices, and while the DOE's renewables loan guranatee program passed this year's budget, the lack of capital to green businesses -- particularly small businesses -- still threatens our ability to build a green economy.
Why are these guaranteed loans so important?
In the wake of the banking crisis, it is difficult for small businesses to get loans. In particular, high tech startups such as renewables companies suffer, because the banks deem them a high risk. They can't get venture capital much more easily, either, for the following reasons:
- Investors are concentrating on older, more established firms hoping to get returns on their longer term holdings.
This loan program is absolutely essential to job creation, and it makes possible green energy projects large and small. It is set to expire in September, and it is fiercely under attack by the GOP.
Reid is set for that fight.
"All the money provided in the Recovery Act stimulus is obligated through the first of October and we need to get more money to continue this ... program," Reid said. "I'm going to fight very hard for that in next year's budget."
The Heritage Foundation suggests eliminating applied research programs entirely. They also chip away at renewables growth by insisting that the government's role should not be to force particular technologies into the marketplace or to subsidize their commercialization.
The GOP currently wants to slash these loan guarantees by 70%.
To date, the DOE loan guarantee program has:
Completed 27 transactions equivalent to just over $30 billion in loans and loan guarantees.
...
These projects have created more than 60,000 direct jobs.
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