Before the Republican National Convention, Mitt Romney was the Republican nominee in all but name. By law, however, he could only spend primary donations until he officially became nominee. To increase cash flow during the interregnum, the Romney campaign borrowed $20 million.
“We realized that we could collateralize this debt with $20 million of general-election funds that were already sitting in our bank account,” a senior Romney aide says, speaking exclusively with National Review Online.
In order to compete with President Obama, the senior aide continues, Romney’s advisers could not sit on their hands until they were able to use general-election funds.
So far, $9 million has been paid back. Five million was paid back before the end of August and an additional $4 million has been paid back in September.
The Romney campaign borrowed the money in August from the Bank of Georgetown, just as many of its primary dollars were drying up.
“We took advantage of the law as it exists to secure this line of credit,” the aide says. “We were able to stay competitive in a period when we were looking at a tilted playing field.”