Dems Hit Terry on Bank Loan

Rep. Lee Terry (R-Neb.), who found himself locked out of $100,000 in campaign money as the financial crisis hit, has come under fire from Democrats in his state for taking out a $100,000 bank loan to cover the unavailable cash.
In September, Terry found himself locked out of $100,000 in campaign money invested in the Reserve Fund when the giant money market fund was unable to pay its customers. Terry’s campaign took out a $100,000 loan from Sherman County Bank Oct. 24 to make its final TV and direct mail purchases of the campaign, Lee Campaign Manager Dave Boomer told The Hill.
When the loan was reported in the Omaha World-Herald last week, the Nebraska Democratic Party wasted no time in using it to hit Terry.
“At a time when Americans are struggling to obtain credit, Lee Terry apparently had no trouble securing a $100,000 loan when his campaign hit hard times," said Eric Van Horn, Communications Director of the Nebraska Democratic Party. "This loan raises serious questions. Did Lee Terry receive a sweetheart deal?”
The Nebraska Dems questioned whether Terry’s $100,000 prevented the bank from lending to any homebuyers or students seeking loans.
Lee's challenger, Democrat Jim Esch, seized on the frozen funds to blast Terry's support for Social Security privatization.
"Congressman Terry's decision to invest in a money market fund was a gamble and he lost. Now he wants to make the same gamble with our Social Security," the campaign said in a statement released Friday.
When asked for comment by The Hill, Terry's campaign was quick to point to the $15 million loan taken out by the Democratic Congressional Campaign Committee (DCCC) Sept. 8.
“This is a last-minute smear by Democrats. If they're concerned about the availability of loans then they should attack the DCCC,” Boomer said.
With the loan, Terry had just under $330,000 cash on hand compared to Esch's $110,000, as of Oct. 15. The closeness of Terry and Esch's race has been disputed by various parties and polls. A poll conducted for Esch's campaign in mid-October showed Terry leading by one percentage point, though Terry's campaign disputes its methods, while a Daily Kos/Research 2000 poll in early October showed Terry leading by 10 percentage points.
Terry, meanwhile, is hammering Esch for telliMSNBC today that he "probably would" vote against the Freedom of Choice Act supported by Barack Obama, which would guarantee abortion rights for American women whose pregnancies have not reached the point of viability.
Esch declares himself a "pro-life Democrat" who opposes abortion and embryonic stem-cell research. Boomer called Esch's statement a "major blunder."