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Virginia Politics
Posted at 10:54 AM ET, 11/01/2012

Allen guarantees $500K loan to Va. Senate campaign

This post has been updated.

George Allen’s U.S. Senate campaign took out a $500,000 bank loan this week, with the candidate himself personally guaranteeing the money..


George Allen (Bill Tiernan - The Virginian Pilot)
The loan, made on Monday, was not announced publicly, but he revealed it on a required “48-hour notice” of fundraising that he filed with the Office of the Secretary of the Senate.

The report shows the loan as coming from Allen himself. But an Allen aide explained that the loan was actually from a bank — taken to cover online donations that have been made to the campaign but have not yet cleared the bank — and that Allen’s name was listed on the form because the loan had to be backed by a person. Allen himself has not actually given any cash to the campaign, the aide said.

“The campaign took out a line of credit to have maximum flexibility to access funds we continue to raise online and through credit card donations,” said Allen spokeswoman Katie Wright. “This race will come down to the wire, the momentum is on our side and we feel good about our position as head into the final weekend.”

Allen faces fellow former governor Timothy M. Kaine (D) in the contest to succeed retiring Sen. James Webb (D), and Kaine has outraised Allen in every fundraising period since the Democrat entered the contest.

As of Oct. 17, Allen had more cash in the bank than Kaine, though Kaine had spent more on advertising buys. Kaine’s campaign said on a conference call with reporters Wednesday that it had spent $9.5 million on advertising, $2 million more than it had previously planned to spend.

Kaine’s fundraising edge has been balanced somewhat by outside spending. Nearly $28 million of the $48 million from outside groups that has been spent on the race has gone to attack Kaine or boost Allen, according to a running tally maintained by the Center for Responsive Politics.

By  |  10:54 AM ET, 11/01/2012

 
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