KANSAS CITY, Mo. - A deal has been reached on a $1.6 million loan Representative Emanuel Cleaver defaulted on for his Grandview car wash.
Judge Marco Roldan said Bank of America had reached the agreement with Cleaver this morning right before the case was set to go to trial.
Roldan said all necessary paperwork had been filed. He said he would likely sign off on the settlement late Wednesday but had not read the details as of Wednesday morning.
In 2002, Cleaver and his wife borrowed the money to buy Grandview Auto Wash.
Bank of America allegedly loaned Cleaver $1.3 million to purchase the business.
Last year, the bank demanded Cleaver Co. LLC pay back the loan and interest.
The Small Business Administration also provided some of the money. The government agency had guaranteed part of their loan.
SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA provides a taxpayer-backed guarantee on part of the loan.
The settlement details and the role BOA and the SBA played will be released as soon as Judge Roldan signs off on the terms.
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