In Cape Girardeau on Saturday, Republican gubernatorial candidate Dave Spence was caught making another outrageous and inaccurate claim about his record, telling the Southeast Missourian that his business “didn’t want incentives. We wanted the government out of our lives.” [Southeast Missourian, 7/7/12]
In fact, the complete opposite is true. Not only did Spence repeatedly take advantage of government incentives and grants for his business, he also benefited from his bank’s $40 million bailout from Washington – and even voted not to repay the money taxpayers are still owed.
“Dave Spence says he wants government out of business – but when it was his own business and bank he was more than happy to take advantage of government assistance,” said Isaac Wright of the Missouri Democratic Party. “Spence is running a dishonest campaign that is completely at odds with his record. Will Dave Spence finally come clean about his habit of using taxpayers’ money for his own personal benefit?”
BACKGROUND:
Spence Personally Benefited from His Bank’s $40 Million Bailout. Spence was one of the largest shareholders in Reliance Bank, where he served on the board of directors. He also received millions in loans from the bank, including a $1.1 million loan for a luxury vacation home. [Reliance Bancshares, SEC Form 4, 9/20/10; St. Louis Business Journal, 2/23/09; Associated Press, 3/31/12]
- And Was Caught Covering Up His Vote Not to Repay Taxpayers. For months, Spence claimed he resigned from the bank over its refusal to repay taxpayers. Spence was finally forced to admit that he “voted with the rest of the bank board in early 2011” not to repay the bank’s $40 million bailout. [Associated Press, 3/31/12; St. Louis Post Dispatch, 4/5/12]
Spence’s Company Repeatedly “Applied for and Received State Tax Credits.” As reported by the St. Louis Beacon, “In 2001 and 2004, Alpha Plastics Inc. -- owned by Kirkwood businessman David Spence -- applied for and received state tax credits to help cover its expansion costs.” [St. Louis Beacon, 1/20/12]
Spence Admitted to Purchasing Tax Credits on the Secondary Market. Spence wrote in an op-ed that he “purchased tax credits in the secondary market because it made sense for me personally.” [Spence Op Ed, 3/23/12]
Spence’s Firm Was Sued and Forced to Repay Government Grant After Failing to Meet Job Goals. “Spence's plastic bottle business had to repay $75,000 of incentives to New York after failing to meet job targets, according to records obtained by The Associated Press.” In December 2005, “the Empire State Development Corp. sued Alpha Plastics asserting it ‘did not achieve the employment goals’ and demanding a $75,000 repayment.” [AP, 6/20/12]
Spence Purchased His Company with Help from the U.S. Small Business Administration.
“Spence said he had been turned down by 12 banks and purchased Alpha with the help of a federal loan through the Small Business Administration.” [St. Louis Beacon, 11/18/11]
