EVANSVILLE — Old National Bank, headquartered in Evansville, sued the former mayor of Baltimore Wednesday, alleging she failed to repay $2 million in loans issued to two businesses she managed.
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The complaint, filed in the U.S. District Court for the District of Maryland, names Stephanie Rawlings-Blake, who served as Baltimore’s mayor from 2010 through 2016, as the sole defendant. Last year, Old National Bank merged with Capstar Bank, which originally issued the loans to Rawlings-Blake.
Rawlings-Blake formerly led the United States Conference of Mayors and was secretary of the Democratic National Committee, two high-profile positions that put Rawlings-Blake in close proximity to some of the nation’s most powerful politicians and business leaders.
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At issue in the suit is Rawlings-Blake’s outstanding loan balance of $2,109,114, the complaint states. Rawlings-Blake signed the loan as a guarantor on Nov. 8, 2023 on behalf of Gulf Coast Technology Corporation, where she served as president. The loaned funds also reportedly flowed to Buy MBE LLC, a company Rawlings-Blake managed.
Both companies listed a Baton Rouge, Louisiana, address as their headquarters, according to the Baltimore Brew. Buy MBE is a business-to-business procurement firm, while there is little publicly available information about Gulf Coast Technology Corporation’s business.
According to Old National Bank, Rawlings-Blake signed an “unconditional guarantee” that requires her to repay the $2.1 million loan even if Gulf Coast Technology Corporation or Buy MBE LLC went out of business.
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“The defendant absolutely, unconditionally and irrevocably guarantees repayment of the note pursuant to a U.S. Small Business Administration Unconditional Guarantee dated November 8, 2023, from the defendant in favor of the lender,” the complaint states.
After Rawlings-Blake left the Baltimore mayor’s office in 2016, she engaged in a variety of business pursuits and served on high-profile boards. For a little more than a year, she was the executive director of the National Basketball Players Association (NBPA) Foundation.
Last year, Rawlings-Blake announced that Airbnb, the short-term rental company, tapped her to chair its Housing Council.
Houston may be contacted at [email protected]
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