During the official start of the Great Recession, many of us were struggling just to hold on to our homes and our jobs.
But Brian Kemp was able to secure more than $2,000,000 in loans from First Madison Bank and Trust in Athens, Ga. What’s unique about these loans is that Kemp is a founding board member and stockholder.
What’s more, it’s clear from a Fox 5 investigative report that the loan terms have been modified over the past decade to give Kemp more time to pay them off. Kemp is benefitting from a sweetheart deal many Georgian’s could’ve used when their houses were being foreclosed on and their retirement savings destroyed.
While these “insider loans” are legal, they are highly regulated to make sure insiders like Kemp get the same treatment as any other borrower.
As Fox 5 reports, one of these loans had terms that allowed the business to borrow up to an “unlimited” amount. Another loan was modified to substantially extend the amount of time Kemp’s company had to pay back the loan.
As Emory University finance professor Rohan Ganduri summed up quite succinctly, “That’s not very typical.”
Kemp and his team have defended these loans, saying they are just part of the bank’s regular business practices. But he won’t share the loan terms in order to verify the claim that he received no special treatment.
What’s more, Kemp is facing a lawsuit over a $500,000 loan his company defaulted on.
And he still owes more than $775,000 to First Madison Bank and Trust.
If you would like to become an investor in any of these dubious real estate investment projects, Kemp can be reached at (706) 540-0989.