Friday, May 19, 2006

Paying Texas to Recover from it's Devastating 9/11 Attacks

They say everything's bigger in Texas -- and the Small Business Administration's foul ups on terrorist relief loans are a good example of that.
While businesses around Ground Zero were going broke and couldn't get help, the SBA was boxing up money to ship thousands of miles away, to deep in the heart of Texas.

KVUE-TV in Austin found Washington sent $47 million in it's STAR loans to central Texas to help small businesses recover from the 9/11 terrorist attacks on New York and Washington, DC.

Click on the TV screen to watch the KVUE-TV report

The people they talked to who'd gotten loans never knew they were for terrorist recovery. They said they'd never have taken the loans if they'd known that. The Inspector General has since come down hard on the Small Business Administration for it's lack of oversight in handing out the money.

The Loan STAR State

What did your money pay for?
  • $1.189 million to a lube & tune up shop
  • $1.015 million to a boat dealership
  • $634,000 to a frozen yogurt shop
  • $570,000 to a shoe store

Back in February, we told you in a Watching Washington Videocast about similar foul-ups in Massachusetts:

The money was supposed to go for loans directly relating to 9/11 problems. The KVUE report suggests SBA simply lumped the money into the rest of it's loan program. (KVUE-TV)

No comments: