April trial set over Rep. Cleaver's car wash

Written by Muleskinner Staff

(KANSAS CITY, Mo., AP) — A trial will get under way April 17 in Jackson County to resolve a dispute over a loan that Rep. Emanuel Cleaver used to purchase a suburban Kansas City car wash.
The Kansas City Star (http://bit.ly/REd8co) reported that Bank of America has sued Cleaver’s company, Cleaver Co. The bank alleges that the company has defaulted on the $1.3 million loan taken out for the Grandview car wash.
Because of penalties and interest, about $1.5 million now is owed on the 2002 loan.
The Small Business Administration has guaranteed about 75 percent of the loan. That means taxpayers could be on the hook for more than $1 million if the loan goes into default without some payment.
The Democratic congressman is seeking re-election and blames the lawsuit on a business dispute.
 
[email_link]