The Delaware County district attorney's office said the incident stemmed from the towing of Holden's car by Seiple Collision.
Investigators say Holden implied to the owners of Seiple Collision that their contract with the borough would be in jeopardy unless he was paid a bribe.
The owners of Seiple Collision contacted police and informed them of what was going on.
Then, on Wednesday afternoon, Holden allegedly met with Thomas Seiple and obtained a payment of $1,000, the D.A. said.
That money was to be a down payment for a $7,000 bribe to ensure Seiple Collision would keep its contract, investigators said.
Holden was arrested and, according to the D.A., he had a fully-loaded handgun on him.