Report: 9/11 Loans Went To Unaffected Businesses

December 28, 2005

WASHINGTON -- An audit finds many companies that got government loans after the Sept. 11, 2001, terrorist attacks say the attacks didn't affect them and they didn't even know they were getting terrorism assistance.

The Small Business Administration's inspector general reports that lenders failed to document that recipients were actually hurt by 9/11 and therefore eligible for the help in 85 percent of the loans. Those lenders doled out billions of dollars.

According to a report from the agency's internal watchdog, only nine out of 59 sample cases were qualified for the disaster loans. The SBA told lenders they wouldn't be questioned on how they gave out money.

The report backs an Associated Press story from September. The AP found terrorism recovery loans from a similar program went to businesses including a Virgin Islands perfume shop, a Utah dog boutique and more than 100 Dunkin' Donuts and Subway shops.

At the same time, small businesses near Ground Zero in New York couldn't get vital help
from:
http://www.wftv.com/news/5697877/detail.html

also a longer article about it at:
Report Finds Far-Flung Use of 9/11 Loans
http://www.nytimes.com/2005/12/29/nyregion/29dunkin.html?oref=login
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