Rep. Emanuel Cleaver (D-MO), chairman of the Congressional Black Caucus, owes up to $1.5 million to Bank of America, thanks to a loan he took out to buy a car wash. So what, you ask? You’re paying for it.
The Small Business Administration supported the loan, meaning that if Cleaver fails to make payments, the SBA picks up the tab on $1.1 million. Cleaver is likely to default on the loan in toto – he’s spent ten years paying off the original $1.35 million loan, and still has $1.2 million in unpaid principal, plus another $300,000 in late fees and charges.
The Grandview Auto Wash is apparently a major bust. “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 against Cleaver stated.
Cleaver’s run into trouble on the car wash before – he fell behind on his taxes in 2002 and 2003, as well as 2004 and 2005.
Good thing we’ll pick up the tab.