Shutdown Leaves Microbrew Taps Dry for Now October 10, 2013

Construction at the Martin City Brewing Company.

The partial government shutdown is starting to affect the beer business. Microbreweries and craft beers in particular.
It has thrown Mathew Moore’s plans to open a microbrewery in the south Kansas City district known as Martin City.
“We have no communication with them. On their side, we have e-mails in, we have calls in, but nothing is being returned because nobody is working,” said Moore.
Moore and many other brewers rely on a small federal agency called the Alcohol, Tobacco, Tax & Trade Bureau (TTB) to get the. Federal paperwork they need to start brewing.
The TTB checks to make sure the federal liquor taxes are paid. It also is responsible for making sure the information the lakes on bottled beer is accurate.
That’s a major element in smaller craft beers that usually put out several brands or seasonal flavors.the Boulevard Brewing Company says it avoided a problem by submitting information early for some season beers it plans to release.
Moore’s opening of his Martin City Brewing Company brewery has been delayed by construction. He hopes to open the facility later this year.
The government shutdown, however, still has him hung up.
He says he tried to reach the Small Business Administration (SBA) Wednesday to see if he could get an extension on his million dollar loan for the project. But he found out the SBA is also closed because of the shutdown.

Cleaver Reaches Deal to Settle Troubled Loan for Car Wash Operation April 18, 2013

The Kansas City Star reports Kansas City Congressman, Emanuel Cleaver has settled his dispute over a loan for a car wash with Bank of America.
Bank of America sued Cleaver and his wife Diane over $1.6 million dollar loan for a Grandview, Missouri car wash business that failed.
Cleaver got the loan from the Small Business Administration in 2003, before he was elected to Congress. The SBA guaranteed 75% of the loan. That means taxpayers could have been involved in paying back the money if a settlement had not been reached.
Under the terms of the settlement that was reached Thursday, the Cleavers are still obligated to repay $1.2 million.
Cleaver says the car wash operation has been sold for about $460,000.
The newspaper report says Cleaver issued a statement about the settlement.
“We recognize our responsibilities and continue to work in good faith to resolve this issue and meet all of our legal obligations,” Cleaver’s statement said.
“We are saddened the business wasn’t successful.”

Cleaver Asks for Car Wash Suit to be Dismissed October 2, 2012

KC Star:
Lawyers for U.S. Rep. Emanuel Cleaver’s company have asked a Jackson County judge to dismiss a Bank of America lawsuit that seeks repayment of more than $1.3 million loaned to the company to buy a Grandview car wash.
In papers filed late Monday, lawyers for The Cleaver Co. LLC said the company admits taking out the loan but denies all other allegations in the case. It also stated that the bank hasn’t presented sufficient facts to warrant a decision in its favor.
The filing asked Judge Charles McKenzie to dismiss the case and award legal costs to the company, which is owned by the congressman and his wife.
Bank of America sued The Cleaver Co. LLC in March, claiming default on the loan the Cleavers used to buy the car wash and demanding repayment. The bank also asked the court to appoint a receiver for the car wash, but the judge denied the request earlier this year.
With penalties and interest, the bank said, the debt has now reached more than $1.5 million.
The loan is 75 percent backed by the Small Business Administration. If the loan goes into full default, the SBA and taxpayers could be responsible for more than $1 million in repayments to the lender.
Cleaver, a Democrat, has blamed the car wash’s problems on a “business dispute.” The Monday filing, however, does not contain details of any dispute.

Read more here: http://www.kansascity.com/2012/10/01/3843302/judge-is-asked-to-dismiss-lawsuit.html#storylink=cpy

Taxpayers Might Foot the Bill Cleaver Car Wash Loan April 7, 2012

KC Star:
Taxpayers could be on the hook for up to $1.1 million to cover a bad loan for U.S. Rep. Emanuel Cleaver’s car wash in Grandview, the Small Business Administration said Friday.
SBA officials said the agency had guaranteed roughly 75 percent of the 2002 Bank of America loan to the firm that owns the business, Cleaver Company LLC. In a lawsuit filed March 30, Bank of America said the company — along with Cleaver and his wife, Dianne — owed more than $1.46 million in principal and interest on the loan.
That means the SBA, a federal agency charged with helping small businesses, could end up paying the bank three-fourths of Cleaver’s principal and interest debt, or roughly $1.085 million, if the Democratic congressman’s company cannot meet its obligations.
Officials cautioned that the exact amount of the SBA’s responsibility might not be known for months, and could be substantially less.
The bank’s lawsuit asks a Jackson County court to appoint a receiver for the car wash, who could sell or lease it to satisfy at least part of the debt, incurred before Cleaver was elected to Congress. Any of those proceeds would be used to reduce SBA’s exposure on the loan.
The agency’s payout would be further reduced by any payments the Cleavers make on the debt.
If the SBA has to pay its loan guarantee, the funds will come from taxpayers and fees charged to lenders and borrowers. In its fiscal year 2012 budget request, the agency asked Congress for $161 million to cover higher than expected loan subsidy requirements.
Despite several requests Friday, Cleaver declined further comment on the lawsuit. But in an earlier statement he blamed a “business dispute. The business has been run by an outside manager for years.”

Read more here: http://www.kansascity.com/2012/04/06/3540958/taxpayers-could-have-to-cover.html#storylink=cpy

SBA Offers Help to Missouri Counties Damaged by Latest Round of Storms March 16, 2012

Missourians hit by the late February storms may get some federal help after all. The Small Business Administration (SBA) says storm victims in 14 Missouri counties are eligible for help.
Earlier this week, the federal Emergency Management Administration (FEMA) declined to declare the damaged parts of 18 counties a disaster zone.
An SBA statement says it “provides low interest disaster loans to homeowners, renters, businesses of all sizes and private, non-profit organizations to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed in a declared disaster.”
Missouri Governor Jay Nixon requested a disaster declaration from SBA earlier this week.
The 14 counties included in the ruling are: Barry, Camden, Christian, Dallas, Douglas, Greene, Hickory, Laclede, Lawrence, Ozark, Polk, Stone, Taney and Webster.
The deadline for filing an application for property damage in May 14, 2012. The deadline for economic injures applications is December 17,2012, according to the SBA.