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stuck in the mittle

Romney Campaign Borrowed $20 Million in August, Has $11 Million Debt

Just borrow from your parents.

Pro-Romney super-PACs may be flush with cash, but a disclosure by a senior Romney aide reveals that in August, the campaign itself actually had to take out a $20 million loan against the general election contributions it couldn't yet access in order to increase its cash flow.

“We realized that we could collateralize this debt with $20 million of general-election funds that were already sitting in our bank account,” a senior Romney aide told National Review Online. “This is permitted by Federal Election Commission rules. In the past, the FEC has specifically contemplated candidates putting up their public financing payments as collateral.”

Team Romney has paid back part of that debt but still owes $11 million to the Bank of Georgetown. After officially receiving the Republican nomination in late August, Romney's campaign gained access to general election funds, which include $111.6 million raised that month. Yet, as the Times notes, it's unclear how much of Republicans' $168.5 million cash on hand will be available to Romney's campaign, because the funds tabbed for Romney are lumped together in a joint fund-raising committee with the RNC. So for the time being, Romney remains in debt. Although indirectly, he's finally experiencing something that's a fact of life for many Americans.

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