Stephanie Rawlings-Blake, the former mayor of Baltimore, is being sued by an Indiana-based bank for defaulting on a $2 million business loan. According to Old National Bank, which initiated the lawsuit, Rawlings-Blake has failed to make the necessary payments since May 2023. FOX Baltimore reported this information, including the lawsuit's filing in the U.S. District Court for Maryland.
With monthly payments halted and a default declared in July 2023, the bank seeks to recover the outstanding loan balance and accrued interest and late fees, totaling over $2 million. Court documents cited by The Baltimore Brew indicate that the loan, backed by the Small Business Administration, was supposed to be repaid over 10 years with $28,000 monthly installments.
Jeremy Eldridge, a legal analyst and defense attorney uninvolved with the case, talked about the significance of the debacle, stating in a statement, as reported by FOX Baltimore, "The only reason that the public should be paying attention to the fact that former Mayor Rawlings-Blake borrowed this money and was unable to pay it back is because the $2-million sum of money is essentially taxpayer money that is being funneled to small businesses for them to thrive and in this case, they didn't." Rawlings-Blake is named in the loan as the president of Buy-MBE, a company that connected minority-owned businesses with large corporate buyers.
Created to support small businesses and economic growth, Rawlings-Blake has affirmed her commitment despite the challenges leading up to these financial troubles. "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," she stated, as detailed by FOX Baltimore.
The legal trouble comes from Rawlings-Blake’s recent departure as executive director of the National Basketball Players Association (NBPA) Foundation and her announcement of becoming chair of Airbnb's Housing Council. According to her LinkedIn profile, which describes her diverse professional endeavors since leaving public office, she primarily operates in the "Water, Sewer and Utility Lines business/industry within the Heavy Construction, Except Building Construction, Contractor sector." Does Obsidian Integrated LLC, the company she founded with Kevin Pomerleau. Pomerleau, on the other hand, has not responded to emails and text messages sent by The Baltimore Brew, seeking comments on the issue at hand.
