Where’d The Money Go?
Ineligible Loan Recipients The Small Business Administration released an investigative report Wednesday that concludes a high percentage of government-backed loans were given to unqualified recipients through a program designed to help businesses affected by the events of September 11, 2001. The SBA’s inspector general said that out of 59 sample cases, only 9 loan recipients appeared to be qualified for the disaster loans. Yahoo! News reports these findings support an Associated Press story in September that found similar problems with the SBA’s Supplementary Terrorist Activity Relief (STAR) program. The AP found that terrorism recovery loans went to, among other places, a South Dakota radio station and a Utah dog boutique. Meanwhile, Yahoo! reports, small businesses near Ground Zero in New York City couldn’t get the assistance they desperately needed.
The SBA’s own investigative report found that out of 34 borrowers interviewed whose eligibility couldn’t be established, 25 said they weren’t adversely affected by the terrorist attacks. 36 of 42 borrowers questioned said they weren’t even asked about the impact of the attacks on their businesses. In response to the SBA’s findings, the Senate committee that oversees the SBA program has vowed to continue with its own investigation to find out “how and why this was allowed to happen.”
