Following a request from Allyson Schwartz during a debate Wednesday night, Tom Wolf released the terms of the loan that partially financed his campaign.
The loan from M&T Bank totals $4.45 million, less than half of the $10 million that Wolf contributed to his campaign in the end of last year. It’s to be repaid in quarterly payments of $150,000 between January of this year and December of 2016. Because the $10 million was given as a contribution, not a loan to the campaign, Wolf cannot be paid back with any money raised for the race.
Wolf secured the loan with personal assets, including a great deal of stock in the Wolf Organization, his family’s company.
“Pennsylvanians are starting to get some answers,” Schwartz spokesman Mark Bergman said. “If Tom Wolf can’t pay back this loan, the bank will control a good chunk of his company. And the last time the Wolf organization was indebted to this bank, the majority of the employees lost their jobs. It’s clear that Tom Wolf is putting his own personal ambition before his employees.”
The Wolf Organization was on the verge of foreclosure in 2009 when Tom Wolf returned to run the business, instead of running for governor in 2010. The company had lost all of its value, and while it has not yet returned to pre-recession profits, it did stave off foreclosure from M&T Bank. The Wolf Organization had taken out a loan in 2006 to buy Wolf and his two cousins out of the business when they wanted to retire, the loan was just one piece of the buyout, which was also funded by other investments.
“Unfortunately, Rep. Schwartz’s frustration over her political standing has driven her to mischaracterize Tom’s record. These sorts of desperate attacks are exactly what’s wrong with politics today. And it shows why we need a different kind of leader who will give Pennsylvania a fresh start.,” Wolf spokesman Mark Nicastre said this morning.
State Treasurer Rob McCord and former DEP Secretary and White House adviser Katie McGinty are also running for the Democratic nomination for governor.