HomeEconomic Issues‘Fiscally Conservative’ State Senator Sued By SBA for Failure to Repay Small Business Loan

‘Fiscally Conservative’ State Senator Sued By SBA for Failure to Repay Small Business Loan

Fiscally conservative State Senator Sean Nienow, (R-Cambridge) and his wife, Cynthia have been sued for failure to repay a loan from the Small Business Association (SBA).  The loan was taken out on January 16, 2009, in the amount of $613,000 for their business known as the National Camp Association, Inc. and was described as an organization to aid parents in the selection of a camp to send their children to.  The Nienows have not made a payment since July 28, 2010.

It is hard to understand how the business qualified for a loan of over a half million dollars, as its website said that they would help parents choose the right camp for their children free of charge.  It never did appear to hold much promise as a lucrative operation, and was dissolved in 2012.  The Nienows personally guaranteed the loan.

Nienow is a former district chairman of the Republican party and gained notoriety when he proclaimed that providing funding for the Vikings’ new stadium  “is not the role of government.”

He was also a supporter of Representative Michele Bachmann who joined him in a call for an audit of the state’s Medicaid payments, to root out the fraud and mismanagement that they see running rampant everywhere.

On his web page Nienow tells his constituents:

“Fiscal responsibility with the tax payers money is a high priority for Senator Nienow. The same common sense money management used by families and businesses is also necessary with the state budget. Senator Nienow is committed to being thoughtful, prudent and disciplined with your tax dollars to ensure the state meets its obligations, provides appropriate help to those in need, and fosters a vibrant economic climate for Minnesota business.”

The suit says that the Nienows owe $558,076.53 in principal and administrative costs of $189,861.09 for a total of $747,937.62.  They have 21 days to respond.

h/t:  PoliticusUSA

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About Bob Cull

I'm retired and live in the Finger Lakes region of Upstate NY. I have strong opinions and my political bent has not changed since I was in high school. Most of my family thinks that I need to find a "real" hobby to fill my time in retirement, but I am content to share my opinions with others and exercise my "right" as a cranky old retired dude to express my views--which are based on many years of real world experience.

6 comments

  1. I took out a much smaller SBA loan to open a business… but I set up a corporation which initially used my home address until I opened the store. Before the SBA lender would release the money, they insisted on inspecting the store, and visited several times a year once I opened the store. Unfortunately, the income projections for the store were too high (I didn’t write the financials) and we had to close the store after about 2-1/2 years, and we lost everything we put into the store, and almost lost our home. I was only able to save it by filing bankruptcy… for both the business and personal because we had to personally guarantee repayment to get the loan. Bankruptcy was the only way to save our home, because we had virtually no money left, not like The Donald who walks away with millions every time he files bankruptcy.

    • Speaking of the Donald brings up another piece of evidence that the TEApubs are severely lacking in intelligence, Latenightlarry. They are all the time saying that he would make a good President and they are talking about running him for governor here in NY because he is “just what we need — a good businessman.”

      How good a businessman can he be? He managed to bankrupt a casino! Casinos are one of the safest businesses to get into, they always make money, the house has a big advantage at all times.

  2. Bob, by itself, that’s not a crime. This would be an ideal home business (assuming, of course, that there is a potential profit). My business address is the same as my home address, because it doesn’t require anything other than office space, a computer link, and some garage space for inventory. No, what I’m wondering is who did he pay to overlook the fact that there was apparently no structure in place to make a profit (or even generate money to pay back the loan)? Or are we missing some facts?

    • I know it is not a crime to run a business out of your home (it could have zoning implications, depending on the business) but that wasn’t my point. My point was that this was a very large loan for a business which had no real tangible assets and it seems questionable that he could have put together a valid business plan that would indicate a potential for profit.

  3. Follow the money. HOW did he get the loan if it was not a money-making business, and WHO approved it?

    Businesses fail for a variety of reasons, but this sounds like a no-brainer.

    • The address of the business was the same as his home address, it really looks like it was a scam that for some reason (arrogance?) he thought he could get away with not paying it back.

What do you think? PLEASE NOTE: AATTP has a no tolerance policy for comments containing racism, personal attacks, vulgarity, profanity or threats.

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