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Dave Helling of the Kansas City Star discusses why the government may cover a large portion of a $1.5 million loan on a car wash.
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-- -- -- Democrat congressman Emanuel -- about reportedly -- -- half million dollars to Bank of America.
It's related to a -- -- -- to buy a car wash now taxpayers may have may be all -- for the money.
Joining us now is Dave Helling he's the Kansas City Star reported he broke his story.
My -- why is the taxpayer going to be on the hook.
For a private sector a loan taken out by a congressman from Bank of America while we involved in this go.
What the along was made in 2002 Stewart by the Bank of America to Emanuel Cleaver but it was guaranteed at least part of it roughly three fourths of it.
Was guaranteed by the Small Business Administration as you may know the SBA has a program.
In which it subsidizes or guarantees loans from small businesses and Emanuel Cleaver who was then by the way private citizen he was not in congress at the time took advantage of that program so in essence SBA has guaranteed 75%.
Of the outstanding loan and interest which is about one point 45.
Million dollars while data -- that SPA.
Might have to come up with about one point one million if everything goes wrong as this process goes -- Now did Emanuel Cleaver either the private citi's nor is -- congressman.
Do you from the -- lost business well did -- make payments on Malone.
-- the allegation from Bank of America in the lawsuit that they filed a couple of weeks ago -- Stuart is that he did not in fact.
The papers filed in court suggests that the cleaver is Emanuel Cleaver and his wife Diane.
Had three forbearance is on the loan that they tried to work out some sort of payment structure.
And for what -- reason alone payments have not been made and because of the way SBA loans are structured the bank has to go into court.
Try to liquidate its damages and then at that point SBA comes in and then it becomes a matter between SBA and the borrow at the borrower in this case Emanuel and -- and -- it.
Is this just a question of taxpayers to the rescue yet again another bailout we have to pay.
-- or is that some suggestion.
Of a conflict of interest between a powerful congressmen getting a loan from the SBA even though he got -- load as a private citizen.
No I mean there's not been no suggestion in my reporting that somehow he's being treated -- differently than any other small business owner might be.
It it when he or she defaults on alone like this I -- -- -- anyone suggests to me.
But somehow SBA or the Bank of America is treating congressman cleaver differently.
Having said that it does draw attention.
Two Emanuel Cleaver as a political matter I mean obviously a lot of people are concerned.
That SBA in guaranteeing 75% of this -- might be on the hook.
Eventually for more than a million dollars that just is a political -- -- isn't something.
That any member of congress who want to confront but there's no suggestion that there's some favoritism or conflict of interest at least so far involving this long.
I should point out that Emanuel Cleaver is the formal Marek Kansas City and I believe is -- a pension from them at 21000 bucks a year that's accurate so.
That is correct he also gets a small salary he is a minister and -- -- a small salary from the church.
He makes a 174000.
A year is a member of congress over isn't covers roughly 200000 dollars a year all of that of course disclosed on his personal financial disclosure with the house tried Dave Helling Kansas City Star thanks for joining us -- appreciate your input on this thank you.
You bet it.
