In a remarkable irony, Abound Solar went bankrupt on the eve of the two-year anniversary of President Obama praising the company. The president cited the green energy company’s $400 million federal loan guarantee as proof of his administration’s commitment to providing jobs.
[W]e’re accelerating the transition to a clean energy economy and doubling our use of renewable energy sources like wind and solar power – steps that have the potential to create whole new industries and hundreds of thousands of new jobs in America.
Abound Solar Manufacturing … will manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs. A Colorado plant is already underway, and an Indiana plant will be built in what’s now an empty Chrysler factory. When fully operational, these plants will produce millions of state-of-the-art solar panels each year.
President Obama added that “Already, I’ve seen the payoff from these investments.” Shuttered factories are “humming with new workers … rolling up their sleeves to help America win the race for the clean energy economy.”
This was all part of the administration’s 2010 “recovery summer” drive, which claimed that the stimulus bill had already gotten the economy back on track.
Two years later, things aren’t looking so good. The company, which was owned by a well-connected top Democratic donor, has declared bankruptcy and is laying off workers. Taxpayers are potentially on the hook for $70 million in funds drawn from the loan guarantee.