SAGE Electrochromics, a company that produces energy efficient windows, was promised federal loan money from the Department of Energy to bolster operating revenues so the company could remain in business. See, SAGE is going to go bankrupt if it doesn't get a bailout. Usually, companies need to provide goods or services the public wants, and make a profit doing so, in order to remain viable. Well, that just isn't acceptable to Franken, who admits:
"While the Department of Energy prolongs closing the deal, time and money are running out for SAGE. There are high-tech manufacturing construction jobs at stake here. It’s been going forward with the project assuming they get this loan guarantee but they’re running out of time and they may have to sell themselves to a French company."
If SAGE can't stay in business via its own merits, then the marketplace is better off if SAGE goes out of business or sells to a French company. By funnelling money to an unprofitable, non-viable company, money is diverted from useful means to wasteful ones. The federal loan money isn't going to do anything about SAGE's business model - it will remain a company destined for failure; the bailout will just prolong the inevitable. But the bailout will prolong the inevitable and maintain SAGE's employees' jobs just long enough for Franken to benefit politically, which is the goal here.
This is an example of corruption that has become far too common these days, and it doesn't take a Ph.D. economist to see why giving money to SAGE is a bad idea and a wasteful use of taxpayer money. The politicians in Washington are literally playing games with our money, and the country's economy is suffering tremendously as a result.
Here's a more complete excerpt of Franken's comments to Energy Secretary Stephen Chu, complaining about how long it's taking for SAGE's bailout to be finalized:
"One such project is from a company in Minnesota called SAGE Electrochromics. I know you are aware of that. Sage has developed energy efficient windows that are cutting edge, better than anything in the world and uses photo-voltaic cells to control the window how dark it gets during the summer to block out UV light and lower air conditioning costs and to let it all in, lower heating costs in the summer. And it’s really…I’ve been there and it’s just an amazing tech. In the Spring of 2010, the DoE promised the company it would receive a $72 million loan guarantee under the 1703 Program to build a new manufacturing facility that would create 160 manufacturing jobs and 200 construction jobs in southern Minnesota. It’s now been two years since SAGE has been notified that it will receive a loan guarantee and the deal has not yet been closed. While the Department of Energy prolongs closing the deal, time and money are running out for SAGE. There are high-tech manufacturing construction jobs at stake here. It’s been going forward with the project assuming they get this loan guarantee but they’re running out of time and they may have to sell themselves to a French company. My first question is that the SAGE loan guarantee was going to be submitted to the credit committee on August 23rd, but it was stopped. Why is the Department of Energy continuing to delay closing and executing the SAGE loan guarantee?"
If it's such an "amazing tech" company, as Franken puts it, then it should have no problem securing financing from private lenders. The problem is, SAGE is a failing company, and it will be a grand waste of OUR money when the bailout checks are finally written to SAGE. It's Solyndra all over again, and there seems to be a never-ending string of Solyndras lining up for handouts orchestrated by corrupt politicians seeking votes the dishonest way.
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