Obama to Streamline the Loan Guarantee Program

Source: Reuters, Katie Fehrenbacher (11/8/10)

"Officials recommended moving program funds to the renewable energy grant program."

The Obama administration is working on streamlining the Department of Energy's loan guarantee program, a spokesperson for the Office of Management and Budget (OMB) commented this morning. The move follows a leaked memo dated October 25, reported by Biofuels Digest, from White House officials to the President.

But instead of "reprogramming" the loan guarantee program, the Obama administration and the DOE have decided to remain committed to the improving the program.

Loan guarantees essentially serve as a promise by the government to make good on a loan if the company can't, and typically enable better interest rates and lower costs than would otherwise be availablefor project financing. Greentech startups have been building businesses around these loan guarantees. Pulling the plug on the project would probably have a ripple effect across the industry.

But it's clear to many that the DOE loan guarantee program hasn't been working as well as it should. White House officials have been concerned about three risks: the potential loss of non-obligated funds, fear of criticism of slow implementation of the program and the risk of making commitments to projects that would have happened anyway.

White House officials recommended reprogramming the loan guarantee funds over to the renewable energy grant program, because the typical length of review for the loan guarantee program is six months, compared to the four to six weeks for the grant program. In addition, just 8 companies have received loan guarantee commitments (with four closed), while 3,851 projects have received renewable energy grant funds.

While the OMB wouldn't go into many details of how the program will be streamlined going forward, the spokesperson said that the White House and DOE are looking to make the program run "more smoothly," "take less time," but also "protect tax payer interest."

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

(00/00/0000)