WP: SBA Finds 9/11 Loan Recipients Ineligible [View All]

http://www.washingtonpost.com/wp-dyn/content/article/2005/12/29/AR2005122900122_pf.html

WASHINGTON -- In a program to help businesses after Sept. 11, a high percentage of government-backed loans went to recipients who appeared to be unqualified _ some of them unaware they were receiving terrorism-recovery money, investigators report.

The Small Business Administration's inspector general said Wednesday that agency officials were at fault for telling lenders in the program that their determinations would not be questioned.

The inspector general concluded that only nine loan recipients in the 59 cases sampled appeared to be qualified for disaster loans.

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The AP found that terrorism recovery loans went to a South Dakota radio station, a Virgin Islands perfume shop, a Utah dog boutique and more than 100 Dunkin' Donuts and Subway sandwich shops in various locations.

Meanwhile, small businesses near Ground Zero in New York couldn't get the assistance they desperately sought.

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