Recovery Loans Went to Many Undeserving Businesses

9-8-05 - More than 100 Dunkin' Donuts and Subway sandwich shops are among a host of companies that benefited from the government's multi billion-dollar effort to help small businesses recover from the Nine-Eleven attacks.

The Associated Press has found that the five billion-dollar effort was so loosely managed it gave low-interest loans to companies that didn't need terrorism relief, and to some that were located far away from the scene of the attacks. Some didn't even know they were getting it.

Nearly a million dollars of that money went to help a Virginia man buy a special events company in Richmond. He says he was "beyond shocked" to learn where the loan came from.

The Small Business Administration administered the two Nine-Eleven recovery loan programs. It says while it intended to spread the money broadly, it first learned of the problems through the AP's review.

It says it's weighing whether to launch an investigation.


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