Republican Eric Hovde’s company drove small businesses into bankruptcy

Wisconsin U.S. Senate candidate Eric Hovde runs a bank that forced small businesses into bankruptcy. Hovde often highlights his banking experience as evidence that he knows how to support entrepreneurs.

Hovde, a Republican, launched his campaign challenging incumbent Democratic Sen. Tammy Baldwin earlier this year. He has been CEO of the Utah-based Sunwest Bank since 2015. He has been chairman of Sunwest’s board of directors since 1999.

According to publicly available records, Sunwest Bank initiated foreclosure proceedings against at least 25 small businesses between 2009 and 2023. In many cases, the bank seized property and other assets as collateral for defaulted loans. Ten of these businesses were forced to file for bankruptcy as a result of the foreclosures.

One of these businesses was owned by Ken Burgwald, a disabled veteran from California. In February 2010, Sunwest sued Burgwald and his company, BRU Aerospace, for defaulting on two small business loans. Sunwest demanded $443,870 in restitution. 

Burgwald told the Orange County Register in 2009 that he started BRU Aerospace to provide jobs for other disabled veterans. In May 2010, following Sunwest’s suit, Burgwald and his wife filed for bankruptcy. Sunwest was listed as their second largest creditor.

In May 2010, Sunwest sued Dahli Coles, a single mother from Los Angeles, CA who sold handmade accessories. Sunwest demanded repayment of $281,931. In November 2010, an Orange Country court ruled in favor of Sunwest and gave the bank possession of Coles’ business collateral.

Coles filed for bankruptcy in October 2011. She also listed Sunwest as her second largest creditor.

Sunwest foreclosed on both the business and home of Gordon and Penny Rose in December 2009. The couple owned the Gordon James Grill & Bar in San Clemente, CA. The Roses initially had a loan with Pacific Coast National Bank before it was transferred to Sunwest.

Sunwest demanded repayment of $747,656 and the seizure of the collateral, which included the couple’s home. In February 2010, the restaurant filed for bankruptcy and permanently closed shortly thereafter.

The San Clemente Times reported that the Gordon James Grill & Bar was one of the most popular and beloved restaurants in San Clemente. Gordon told the paper that the foreclosure and bankruptcy were “devastating.”

“Never in my life have I owed money to anybody,” Gordon said. “We were embarrassed by [the bankruptcy]. We’re in our 50s and now we have to start over again.”

Sunwest also foreclosed on small businesses in Washington and Arizona.

In 2022 and 2023, Hovde appeared in a series of ads for Sunwest Bank touting their supposed commitment to helping entrepreneurs and small businesses. 

“Are you tired of how your big bank is treating you?” Hovde said in one ad. “At Sunwest Bank, we’ll treat you right.” 

In April of this year, Hovde appeared on a podcast sponsored by the Job Creators Network, a conservative business advocacy group. In the discussion, Hovde said his experience dealing with small businesses at Sunwest informs his economic views and claimed the Biden administration was making life difficult for entrepreneurs.

“Every time I talk to small businesses, they’re unhappy in large part with this administration,” Hovde said. “And, look, we’ve got to have our small businesses be strong.”

This is not the first time Hovde’s business record has been scrutinized. Sunwest Bank is currently being sued for alleged mismanagement of a nursing home. A hedge fund owned by Hovde has come under fire for investing in corrupt foreign banks.