Former Baltimore Mayor Stephanie Rawlings-Blake is being sued by Old National Bank over a defaulted $2 million business loan. The lawsuit, filed in U.S. District Court for Maryland on Wednesday, claims monthly payments of $28,000 ceased in May 2023, leading to a default in July.
Court documents show that Rawlings-Blake personally guaranteed the loan, which was originally provided to Gulf Coast Technology Corporation. Old National Bank, which merged with CapStar Bank in 2023, is seeking recovery of the outstanding balance plus interest and late fees, amounting to over $2 million.
Rawlings-Blake, who served as Baltimore’s mayor from 2010 to 2016, currently serves as president of Buy-MBE, a majority minority-owned company that facilitates connections between local and mid-sized businesses and Fortune 500 buyers. In a statement to FOX45 News, she explained, “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.”
Legal analyst Jeremy Eldridge, who is not involved in the case, provided context: “My initial reaction is that the former mayor, obviously, is in economic distress.” He noted that while the case involves public funds intended to support small businesses, there are no allegations of criminal wrongdoing. “This really is a civil matter,” Eldridge stated.
The Baltimore law firm Rosenberg, Martin and Greenberg, representing Old National Bank, has declined to comment on the pending litigation.
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