With the current system, a politician, like Lamborn, can give a donation to his or her campaign at a certain interest rate, and then eventually make money off the donation because of the interest. It’s another loophole that is currently “legal,” but raises many questions of character and commitment. Where’s the commitment to a moral code and respect for the constituents who contributed to his campaign? These kinds of loopholes fit more closely with a career politician than a true representative of the people.
In 2006, Lamborn loaned his campaign $100,000 in personal funds, charging an interest rate of 5%. Along with the issue of him making money on a campaign donation that he made to his own campaign, there is also a question of where the funds actually came from. Multiple local press stories have addressed that Lamborn is one of the least wealthy members of Congress, suggesting that he likely has never had $100,000 in personal wealth to contribute to his campaign. In 2015, Lamborn disclosed to the FEC that he had misrepresented a $100,000 loan to his 2014 campaign as personal funds when it was, in fact, drawn from a line of credit, opened in 2005, that used his home as collateral. So, it’s still somewhat in question if he did the same thing with the second supposed personal loan.
Here is a breakdown of the loan repayments:
(Federal Election Commission, Lamborn for Congress, Reports 2006-2010)