why did millions in 9-11 federal loans go to Houston?

[donsu]

http://www.khou.com/topstories/stories/khou070209_ac_911loans.688fad93.html


Millions in federal loans post-9/11 given to local businesses


-snip-

But why did the federal government use your tax money to guarantee loans for Houston businesses after the terrorist attacks in New York and Washington?

Nearly $100 million got spread around our city.

-snip-

But here in Houston, some 200 businesses got more than $97 million in government-guaranteed 9/11 loans.

11 News showed the list to Houston Congressman Ted Poe.

“That’s absurd,” he said. “The loans were specific for people generally in the New York City region and then those in Washington, D.C. Businesses that were directly affected by what happened on 9/11.”

-snip-

In our area, the biggest loan, nearly $2 million, went to build a car wash.

One and a half million went to a “wellness” center; $1.3 million to a pre-school; and a $1.2 million to a dry cleaners.

And on and on.

-snip-

Turns out, those businesses told 11 News they had no idea they were getting loans from any kind of 9/11 program. In fact, 11 News contacted a half dozen of them, and each of them said the same thing.

-snip-

So what happened to this taxpayer-funded program that was supposed to help businesses hurt by the terrorist attacks?

The government-guaranteed loans were made through local banks, which were supposed to document the 9/11 effect.

The banks made money on the loans from interest but faced no risk themselves because the federal government would cover the loan if the business went bust.

-snip-

In any case, he said the loans stimulated Houston business and created jobs: “It’s what the government intended.”
-snip-
---------------------------------

bet the banks in question are neo con owned

[blm]

1. Kerry brought this up in the 2004 campaign about 9-11 money going to businesses

and even BIG businesses from the money allocated to small businesses effected by 9-11.

Corpmedia certainly didn't think it was serious enough to repeat.

Kerry brought it up again when Katrina money started going the same route.



Senator Kerry pressed SBA Administrator Hector Barreto on this very issue at a hearing of the Senate Small Business Committee in February 2002 A transcript of that hearing is available on www.kerry.senate.gov.

Kerry is ranking member of the Senate Committee on Small Business and Entrepreneurship. “This is another indication of the administration’s utter failure to respond adequately to the needs of small businesses in times of emergency. This was a deliberate attempt to cover up White House budget gimmicks that left the SBA’s largest loan program underfunded and on the brink of shutting down.

“The administration asked SBA employees to bend the rules and steer regular loans through the program aimed at helping businesses impacted by 9/11. As a result, millions of dollars meant for terrorism assistance went to companies that weren’t hurt by the 9/11 attacks. These small business owners didn’t even know they were receiving loans intended for 9/11 recovery. And businesses whose lenders wouldn’t play along with the SBA’s accounting games got shut out.

“We have to make sure this won’t impact lenders’ willingness to help businesses hurt by Katrina get back on their feet, and the only way to do that is to hold this administration accountable. This time I have put in strong protections to force the SBA to do the right thing and to ensure those who really need the help get it.”

# # #

[shance]

2. More questions surrounding that day continue to demand answers

n/t

[tanyev]

3. I guess 9-11 worked very well for them, didn't it?