They say the first step is admitting you have a problem. At least that’s what they tell you at Alcoholics Anonymous meetings. I wonder what the Hypocrites Anonymous twelve steps are. Emmanuel Cleaver, Congressman representing the Kansas City, Mo. district, is being sued by Bank of America for a small business loan he and his wife took out in 2002 in the amount of 1.3 million dollars to buy a business in Kansas City.
Bank of America wants it’s money back. Evidently, Cleaver has been late or refused to make the loan payments. Nice Deb has the details;
In what is certain to cause him election year migraines, the Bank of America has filed suit against Missouri Rep. Emanuel *Spittlegate* Cleaver, seeking repayment of $1.5 million from Cleaver, his wife and The Cleaver Company for a 20 year loan that originated in 2002 at a 6.25% interest rate. Cleaver has received three (3) forbearances over the ten year period.
Jacob Turk, Cleaver’s opponent in the District 5 2012 House race, noted on his Facebook page, today, that Cleaver voted on September 23, 2010 for H.R. 5297 which ‘increases the government guarantees on SBA 7(a) loans from 75 percent to 90 percent’, in essence, putting taxpayers on the hook for his bad debt. ( emphasis mine)
The Kansas City Star reports:
The bank that loaned the Kansas City congressman and his wife $1.3 million in 2002 to buy the Grandview Auto Wash at 12204 Blue Ridge Extension is now demanding payment of more than $1.5 million, after the Cleavers repeatedly fell behind on repaying the loan.
The suit, filed last week in Jackson County Circuit Court, said the demand for repayment came after three attempts to delay foreclosure. Bank of America also is seeking attorney’s fees and a receiver to protect collateral.
“The Cleaver Company failed and refused, and continues to fail and refuse, to pay the outstanding obligations due and owing … under the note and other loan documents,” the lawsuit said.
In an email statement, Cleaver said, “This is a business dispute. The business has been run by an outside manager for years.” He said because it was a legal matter, he would have no further comment.
According to court documents, the outstanding principal totals $1.2 million with interest totaling $240,545 as of March 6. Late fees have reached $54,587. Both Cleavers had personally guaranteed the debts, according to the suit.
The loan was originally part of a Small Business Administration program. It was not clear Thursday how much money, if any, taxpayers will have to provide if the loan defaults.
The Bank of America lawsuit documents are here.
Of course, Cleaver being one of those progressive liberals, he blames someone else, in this case, the outside manager he hired to run his business. If only he was the President, then he could lay the blame on George Bush, eh?