7th Congressional candidates loan nearly $300K to campaigns

Candidates for the 7^th Congressional District are fighting to attract financial donors, but some congressional hopefuls are inflating their fundraising totals by loaning sizable amounts of their own money to their campaigns.

Filings from the fourth quarter of 2011 show that the field’s top three fundraisers issued personal loans to their perspective campaigns totaling nearly $300,000 dollars. 

Former Lt. Gov. André Bauer issued his campaign a $150,000 loan, roughly half of his total reported contributions and the most of any candidate.

Florence attorney Jay Jordan reported two separate loans for a total of $95,000.35, a little less than half of his fourth quarter reports, and Chesterfield Democrat Rep. Ted Vick loaned his campaign $50,000, accounting one fifth of funds raised.

Under Ch. 17 of FEC Election Campaign Guide, a candidate and his committee may obtain loans, either from himself or a financial institution, so long as the interest is set at a “reasonable rate” and the loan and interest are disclosed from the outset.

Bauer and Vick are listed as charging zero percent interest on both of their loans, while Jordan has a 3 percent rate on the smaller of his two loans. 

FEC listings has Bauer as the top fundraiser among all candidates, with $301,955.12, but without the $150,000 loan the former lieutenant governor falls to fourth in the fundraising sweepstakes with $151,933.12.

When asked about his loan, Bauer said it was issued to meet a personal fundraising goal of $300,000 by the end of 2011. On Friday, Bauer said he did not expect to be the top fundraiser among the candidates by the time the race is done, partly, he said, because he currently does not have a sizable campaign staff and doesn’t anticipate making additional hires anytime soon.   

“We’ll be fighting an army with a toothpick,” Bauer said, but added that he wasn’t worried that being financially out gunned might hurt his chances of being elected. 

“I’ve been out fundraised in every single election I’ve run in.”

Campaign fundraising does have its advantages, like helping increase name recognition through advertising or paying staffers and consultants; however, retired FMU political scientist Dr. Neil Thigpen said high contribution figures give off the perception a candidate has strong support, motivating some to issue loans as a way of keeping up appearances.

“Money raised is indicative to how well your campaign is going,” Thigpen said. “But I don’t think it is subterfuge or anything. It’s common practice for people to lend to their own campaign. That’s not just here in South Carolina, but nation wide. Then, if they wind up winning, they hold fundraisers and pay themselves back. It’s a means of showing the flag sort of.”

Like Bauer, Jay Jordan, said his loan was a gesture to supporters that he was personally invested in his campaign, but the inflated fundraising numbers have already resulted in more donations early in the first quarter of 2012.  

“I think that’s what demonstrates to people this is not something that is just a ‘fly by night operation’ or just a noble effort,” Jordan, who had some 400 people attend his announcement rally in November. “That provides credibility for people to get on board.”

And it’s working.

Invitations are already being sent out for a Jordan campaign fundraising event set to take place at the home of Dr. Eddie Floyd later this month. Floyd, Chairman of the Drs. Bruce and Lee Foundation and a prominent force in South Carolina politics, is one of just one of several sponsors of the event, according to the campaign.  

One 7^th Congressional candidate, Democrat Preston Brittian, is listed in FEC filings as having contributed funds to his campaign outright. Brittian contributed $5,000 on Nov. 15.

Campaigns on loan
Without loans or personal contributions, fundraising standings in the 7th Congessional District.

Tom Rice (R) – $206,700.00
Ted Vick (D) – $174,616.36 (Issued $50,000 loan)
André Bauer (R) – $151,955.12 (Issued $150,000 loan)
Jay Jordan (R) – $111,872 (Issued $95,000.35 in loans)
Preston Brittian (D) – $79,075 (Contributed $5,000)
James Mader (R) – $1,099.78

Other candidates not filed with FEC as of Feb. 3