The U.S. attorney's office is suing Sen. Sean Nienow and his wife, alleging they failed to make payments on a Small Business Administration loan.
The Star Tribune reports the lawsuit alleges the Republican and his wife, Cynthia, stopped making payments on the $613,000 loan in July 2010.
The couple borrowed the money in 2009 for their company, the National Camp Association, Inc. The newspaper reports it is described in media accounts as an organization that helps parents select a camp.
The association, which is listed on the Minnesota secretary of state's website at the Nienows' address in Cambridge, also was sued.
The suit, filed Friday, alleges they now owe nearly $748,000 with costs.
A message left at his home Saturday wasn't immediately returned. The suit was filed in Minneapolis.