COEUR d'ALENE - A civil suit filed last year against Mayor Sandi Bloem for allegedly breaking a lending agreement has been dismissed.

The breach of guaranty claim filed by Panhandle State Bank in 1st District Court was dismissed without prejudice March 12.

Bloem, a three-term incumbent who has operated the business for 25 years, said in November after the complaint was filed the parties were trying to reconstruct the federal small business loan agreement before time ran out.

It sought $80,375.04 plus attorneys' fees, and stated that the $75,000 loan the parties entered into June 30, 2005 was due July 30, 2011.

On Thursday she said the parties achieved the goal by rewriting the loan.

"It was a small business loan that needed to be rewritten and it was rewritten," said Bloem, owner of Johannes Jewelers, Inc., in downtown Coeur d'Alene.

Panhandle State Bank attorneys Hawley Troxell Ennis & Hawley LLP. declined to comment.