Loan Guarantees

Less money is available through the California Small Business Loan Guarantee program, which may result in fewer companies getting funds  California seed money that has helped small businesses such as EarthSmart Products in Wilmington succeed is drying up because of the state budget crisis.  A 42-year-old state program to help small businesses get loans is stumbling partly because a chunk of its trust fund was used last year to help plug the budget gap, and officials say the program's budget for the coming fiscal year has been cut in half.

Fearful of a regional economic meltdown, the European Union and International Monetary Fund approved a dramatic rescue mechanism early Monday to make nearly a trillion dollars in loans available to EU member countries in danger of going bankrupt, as worries persisted that Greece's troubles would spread far beyond its borders. EU finance ministers worked into the morning hours in Brussels to hash out a rescue deal before trading in Asia began in earnest Monday morning. The officials, clearly in crisis mode, hoped to forestall any major shocks that could affect international markets throughout the rest of the day. The agreement "proves that we will defend the euro whatever it takes," EU Monetary Affairs Commissioner Olli Rehn told the Associated Press.

Christos Maggelis is nothing but a bit player in the latest Greek drama. Yet somehow, he fumes, he's the one being punished by the gods. Those would be the ruling politicians of this sun-kissed land who, like Hercules and the Augean stables, face a cleanup task of mammoth proportions: getting rid of a toxic mountain of government debt that threatens the financial health of much of Europe. To do so, Greece wants to cut the pay of hundreds of thousands of civil servants on its overstuffed payroll as part of a tough new public-spending regimen.

A Fremont, Calif., company that makes solar panels will receive a $535-million federal loan guarantee, allowing it to finish the first phase of construction of a factory, a government official said. The loan guarantee for Solyndra Inc. is to be made by the Energy Department as part of the $787-billion economic stimulus package. The expansion is expected to create as many as 3,000 construction jobs and 1,000 long-term jobs. The news is welcome for Fremont, a Bay Area city of 215,000 that was stung recently when Toyota Motor Corp.

As Gov. Arnold Schwarzenegger's mammoth budget-cut proposal hardened partisan battle lines and stirred revolt, California officials scrambled Friday to scrape together a plan to keep the state solvent after the White House informed them that federal backing for emergency short-term loans is unlikely. State Treasurer Bill Lockyer testified before the Legislature that he had been told by Washington not to expect the loan guarantees. The state's senior U.S. senator, Dianne Feinstein, later said there was little chance of help.

California has by far the largest delegation in Congress, almost 10% of the membership. Nancy Pelosi, the speaker of the House, is a Californian, as are five of its committees' chairs -- a collection of powerful positions unmatched by any state. The state's two senators chair important committees, and one holds a coveted seat on the Appropriations Committee.

Whether California will wrest loan guarantees from the federal government is not yet known, but the plea for help is unlikely to inspire the kind of antipathy that met New York when it was on the fiscal ropes in 1975. President Ford's memorable lack of sympathy for the city's plight inspired the iconic headline "Ford to City: Drop Dead." In October 1975, New York City was in a mess, much of it the city's own doing.

Federal officials moved closer Wednesday to guaranteeing as much as $500 billion in mortgages after they are modified to make them more affordable to homeowners, part of the multifront battle to resuscitate the country's flagging economy. The idea, outlined last week by Federal Deposit Insurance Corp. Chairwoman Sheila C.

Tuesday's unveiling of the Chevrolet Volt electric hybrid car was supposed to be a celebration of new technology, the birth of a new class of automobile. Instead, the crowd at General Motors Corp.'s Renaissance Center was buzzing over who was going to pay for it: GM or American taxpayers? GM revealed the much-hyped vehicle at an event celebrating the automaker's centennial. Immediately afterward, company executives faced a barrage of questions about whether some of the $25 billion in low-interest loans the industry is urging Congress to fund would be used to subsidize the Volt's development and production.

Re "Veering from the truth? It works," Sept. 14 It is good to see The Times acknowledging the untruths put forth by the McCain campaign. However, in seeking journalistic balance, John McCain's falsehoods are juxtaposed unfairly with Barack Obama's statements. Your article clearly pointed out six provable McCain lies -- that Obama supports sex education for kindergartners; that Obama said Palin is a pig; that Palin sold the state plane on EBay; that Palin turned down the money for the "bridge to nowhere"; that Palin didn't ask for earmarks as governor; and that Obama would raise everyone's taxes.