The president on Thursday played down big loans he guaranteed for his struggling businesses. But much of that debt is soon to come due in the midst of declining revenue and an I.R.S. audit that could cost him over $100 million.
President Trump painted a rosy picture of his financial condition during a televised town hall on Thursday night, calling his hundreds of millions of dollars in debt coming due “a peanut” and saying he had borrowed it as a favor to lenders eager to take advantage of his financial strength.
In fact, the loans, and the unusual requirement he had to accept to receive them, illustrate the financial challenges he faces and the longstanding reluctance of banks to deal with him.
Mr. Trump had to personally guarantee $421 million in debt, a rare step that lenders only require of businesses that may not be able to repay. The commitment puts his assets on the line and could place his lenders, should he be re-elected, in the position of deciding whether to foreclose on a sitting president. Continue reading.