AP Exclusive: Sept. 11 Recovery Loans Went to Many Who Didn't Need Them

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http://ap.tbo.com/ap/breaking/MGBNLLRBDDE.html

The government's $5 billion effort to help small businesses recover from the Sept. 11 attacks was so loosely managed that it gave low-interest loans to companies that didn't need terrorism relief - or even know they were getting it, The Associated Press has found.

And while some at New York's Ground Zero couldn't get assistance they desperately sought, companies far removed from the devastation - a South Dakota country radio station, a Virgin Islands perfume shop, a Utah dog boutique and more than 100 Dunkin' Donuts and Subway sandwich shops - had no problem winning the government-guaranteed loans.

"That's scary. Nine-11 had nothing to do with this," said James Munsey, a Virginia entrepreneur who described himself as "beyond shocked" to learn his nearly $1 million loan to buy a special events company in Richmond was drawn from the Sept. 11 program.

"It would have been inappropriate for me to take this kind of loan," he said, stating the company he bought suffered no ill effects from Sept. 11.

Arvind "Andy" Patel, 50, said he used his $350,000 loan in fall 2002 to remodel his Dunkin' Donuts shop in western New York state and never knew it was drawn through the Sept. 11 program.