Former Baltimore Mayor Stephanie Rawlings-Blake is facing a lawsuit filed by an Indiana-based bank over a $2 million business loan. The lawsuit, filed Wednesday, seeks repayment after monthly payments of $28,000 stopped in May 2023, leading to a default in July. According to court documents obtained by FOX45 News, Old National Bank, which merged with CapStar Bank last year, filed the lawsuit in the U.S. District Court for Maryland. The bank is seeking the outstanding loan balance, plus interest and late fees, totaling more than $2 million. The funds were provided to Gulf Coast Technology Corporation, with Rawlings-Blake guaranteeing repayment if the borrower defaulted.

In a statement to FOX45 News, Rawlings-Blake, who served as Baltimore’s mayor from 2010 to 2016, said, “I have worked tirelessly to support small businesses and economic growth. As part of that commitment, I personally guaranteed a loan for a small business I believed would thrive and create local opportunities. Unfortunately, like many businesses, this one has faced significant challenges, and I am now addressing my financial obligations related to this situation.”

FOX45 did reach out to Rosenberg, Martin and Greenberg — the Baltimore law firm that’s representing Old National Bank. For now, they say, they have no comment.