Rawlings-Blake doesn’t dispute that the small business failed to meet her expectations when she guaranteed the loan.
According to Fox 45 News, the lawsuit was filed by Old National Bank in the U.S. District Court for Maryland and seeks for Rawlings-Blake to pay the outstanding loan balance, plus interest and late fees, which totals over $2 million.
Per the court documents, the loan was guaranteed to be repaid by Rawlings-Blake herself if the borrower, Gulf Coast Technology Corporation defaulted.
Rawlings-Blake doesn’t dispute that the small business failed to meet her expectations when she guaranteed the loan, in a statement she issued to Fox 45.
“I have worked tirelessly to support small businesses and economic growth. As part of that commitment, I personally guaranteed a loan for a small business I believed would thrive and create local opportunities. Unfortunately, like many businesses, this one has faced significant challenges, and I am now addressing my financial obligations related to this situation,” Rawlings-Blake said.
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Source: Black Enterprise
