A Minnesota state senator who filed for bankruptcy after reneging on a six-figure small-business loan was relieved of $840,000 in debt last year.
The Chapter 7 bankruptcy case of Sen. Sean Nienow, R-Cambridge, officially closed in October, just three months after Nienow and his wife, Cynthia, filed. In court filings, the couple claimed they owed $930,000 to creditors, but had only $122,000 in assets — almost all of which is comprised of his home, which he has mortgaged twice.
The bulk of the debt was owed to the U.S. Small Business Administration, which in 2009 loaned the Nienows $613,000 to buy National Camp Association Inc., a now-defunct guidance and referral service aimed at helping families find camps for children, among other services.
The loan was personally guaranteed by the Nienows, but they stopped making payments in 2010. The federal government sued last year, and a $748,000 judgment was entered against the Nienows. None of the debt was paid.
Nienow said Tuesday that despite the discharge of his debt, he intends to try to make payments to his creditors. The dozen listed are comprised largely of multiple credit card and mortgage companies. The two-time state senator said his financial troubles don't dilute his message of fiscal conservatism.
"Businesses succeed and don't succeed all the time. If people don't take risks with businesses we don't have an economy," he said. "On paper, everything worked. Everything looked responsible. If it didn't, the bank wouldn't have approved the loan."
Nienow, 46, served in the state Senate from 2003 through 2006.
After being defeated for re-election, he won back the seat in 2010, and won again in 2012. His official Senate biography lists his occupation as a consultant. He makes $31,000 annually as a senator.
