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Posted on 01/06/2006 10:42:21 AM PST by freepatriot32
The Associated Press found that loans to help small businesses recover from the Sept. 11th attacks were given to businesses who were unaffected by the attacks. The Small Business Administration (SBA) doled out $5 billion in low-interest loans with little oversight and allowed the loans be distributed among many industries, as reported.
Indeed, small businesses that were not affected by the terrorist attacks were granted loans. Tom Mayl received two Sept. 11th loans to open a Subway shop and a Buffalo Wild Wings restaurant in Sidney, Ohio. Other small businesses that received loans were 55 Dunkin Donuts franchises, a Virgin Islands perfume shop, a South Dakota country radio station and a Utah dog boutique.
Many borrowers were unaware they were using Sept. 11th recovery loans. SBA officials told the Associated Press that they believe banks assigned some loans to the terror relief program without telling borrowers. Banks had a strong financial incentive to approve as many loans as possible for the Sept. 11th recovery program. The banks profited from the interest while shouldering little of the risk, since the government guaranteed 75 percent to 85 percent of the loans, according to CBSNews.com.
Perhaps the most troubling finding was that the businesses located in the areas most directly affected by the Sept. 11th attacks: New York City and Washington, DC, received only 11 percent of the Sept. 11th loans that were distributed. However, 59 small businesses located in Hawaii received terror relief loans, according to ABCNews.com. Many of the businesses were in the tourist industry and cited the economic downturn after 9/11 in applying for the loans.
American taxpayers are already paying for the lack of oversight at the Small Business Administration. Over 600 loans have already been defaulted by companies who went bankrupt or closed, with many of the individual loan amounts approaching $1 million, CBSNews.com reported.
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Gee, there's a shocker. Next up, the Sun rises in the East.
Bush's fault. Oh wait, less than a week to the show.
Alito's Fault!
So they are going to return the money ASAP, right?
Oh yeah you can count on it.They money will be retured about one week after this happens
Yet another reason to get the government out of the economy. They are just spreading the tragedy to EVERY taxpayer.
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