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RUNNING HEAD: SOLYNDRA AND BAD BUSINESS DECISIONS 1

Solyndra and Bad Business Decisions
Annette Frazer
American Public University

SOLYNDRA AND BAD BUSINESS DECISIONS 2

In 2005, President George Bush’s administration created a loan guarantee program to help fund and grow energy projects specifically. The program was overseen and decisions were made by the Department of Energy. The program was continued on during President Obama’s administration with very few changes. Under the Bush administration, Solyndra applied for and was denied financial assistance when they applied. Solyndra is a solar panel company that was issued more than $500 million in federally guaranteed loans during and by the Obama administration. (Report, 2015, p.1.)
According to many, Due Diligence was not exercised by the Department of Energy in investigating this company and their request for funding. During the investigation, the people who were involved in investigating and eventually backing the loan stated that there was “political pressure” from the Administration to push through the loan. (Howell, 2015, p.1) It is speculated that one of the reasons that the loan was pushed through was that many of the investors of the company were major political contributors to President Obama’s campaign fund. This is would be considered a conflict of interest and could cause undue pressure to the loan investigators. Solyndra, however, also lied to the many agencies involved. They were not truthful when they valued the contracts that they had for their product. Solyndra valued the contracts at around $2.2 Billion. This was a severe overstatement of their value. What was in fact the case was, the companies that Solyndra had contracts with were actually buying less panels than they promised and they were making under the table deals to pay lower
SOLYNDRA AND BAD BUSINESS DECISION…...

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