COEUR d'ALENE - An Idaho bank has filed a civil suit against Mayor Sandi Bloem for allegedly breaking a lending agreement when the three-term incumbent and jewelry store owner defaulted on a loan.

Attorneys for Panhandle State Bank filed the breach of guaranty claim in 1st District Court on Monday, seeking $80,375.04 plus attorneys' fees and costs from Bloem, owner of Johannes Jewelers, Inc., in downtown Coeur d'Alene.

The complaint states Bloem entered into the $75,000 loan on June 30, 2005, with all remaining principal, accrued and unpaid interest, coming due July 30, 2011.

Bloem, who has operated the business for 25 years, said Wednesday that the parties were trying to reconstruct the federal small business loan agreement before time ran out.

"It had to do with an SBA loan. We are looking at financing it in a different manner. It's just taking a little longer than we had hoped," Bloem said Wednesday.

She said she is confident an agreement will still be reached, and was unaware the suit had been filed.

Bloem, who has been mayor for 10 years, said Johannes Jewelers is not in financial trouble, and the status of the business or the court filing doesn't have an impact on her work as mayor.