Loan Guarantees

Every day the federal government offers certain companies—and in some cases foreign companies—favorable loan terms, such as below-market interest rates. Politicians claim the loans create jobs or boost American businesses and exports.

But these benefits typically go to politically favored companies. This puts hardworking taxpayers on the hook for a private company’s profits.

When the loans work out, private companies reap the rewards. If the loans go bust, taxpayers pick up the tab. The now infamous energy firm Solyndra received $535 million in loan guarantees from the U.S. Department of Energy in 2009. Two years later, the firm filed for bankruptcy, leaving taxpayers on the hook.

And like countless other examples of corporate welfare, Solyndra had deep political ties that ran all the way to the White House.

Such loan guarantee programs operate through the Export-Import Bank, the Department of Energy and the Department of Agriculture among many others. By one measure, American taxpayers are on the hook for $3 trillion in private loans.

Wherever these special loans exist for private companies, they expose taxpayers to billions of dollars of risk in order to benefit special interests. All of them should be eliminated.

Dec 08, 2015

Keep the Ex-Im Vacancies

Arlington, VA — Special interests may have revived the Ex-Im Bank, but what the U.S. Senate does next will prove whether Ex-Im supporters’ “small business” rhetoric was nothing more than…

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Dec 04, 2015

There’s Nothing “Mystifying” About Opposing Special Interests

By: James Davis “Befuddlement.” That was how Politico described a lawmaker’s reaction to why Freedom Partners would advocate so strongly for something that doesn’t impact their bottom line. Here’s…

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Dec 02, 2015

We Will Continue Rooting Out Corporate Welfare

Arlington, VA — After months of back and forth, the once-dead Export-Import Bank is expected to be renewed for at least four years as part of the unrelated highway bill. The…

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Nov 12, 2015

GE Gets its Subsidies While Pennsylvanians Lose Their Jobs

Arlington, VA – The day after the U.S. House of Representatives voted to revive the Ex-Im Bank, GE announced another round of layoffs—this time 1,500 jobs in Erie, Penn…

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