The report's examples included the Texas golf course, whose owner was
cited by a lender as saying "people were more interested in staying
home and watching the attack on television than playing golf."
However, the course was owned by someone else when the attacks took
place and the justification for the $480,000 in loan guarantees did
not apply to the new owner, the report said.
The tanning salon's lender blamed the September 11 attacks for hurting
the Las Vegas casino industry which employed many of the salon's
customers.
However, the inspector general found the salon's business had grown by
52 percent in 2001 and 32 percent in 2002 and said there was no
evidence the owner could not borrow outside of the program.
The SBA guaranteed $437,000 in loans to the salon, which were used to
expand.
The Illinois candy shop received $21,250 in guarantees but could not
back up its claim that the attacks had delayed the shop's opening, the
report said.
From Reuters, 12/29/05:
http://news.yahoo.com/s/nm/20051229/pl_nm/security_usa_loans_dc;_ylt=AlCSVLsMUb84wgD9Yl2k7wis0NUE;_ylu=X3oDMTA3OXIzMDMzBHNlYwM3MDM-
Nevada tanning salon gets 9/11 loan: audit
By Jim Wolf
WASHINGTON (Reuters) -
A Texas golf course, a Nevada tanning salon and an Illinois candy shop
were among small businesses that may have improperly received U.S.
subsidized loans intended for firms hurt by the September 11 attacks,
an internal government watchdog has found.
The Small Business Administration's inspector general said in a report
made public on Wednesday that in 85 percent of the sample of loans it
reviewed, a company's eligibility to receive the money through the
program could not be verified.
A leading Senate Republican called for further investigation, but the
Small Business Administration said the program was properly
implemented.
The one-year, $4.5 billion Supplemental Terrorist Activity Relief, or
STAR, program offered loan guarantees to small businesses adversely
affected by the September 11 attacks.
However, the Small Business Administration had failed to properly
oversee lenders to make sure that only eligible borrowers obtained
STAR loans, the watchdog's report found.
__________________________________________________
Terrific
Harry
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