9/11 loans-Monies Well Spent

Discussion in 'Off Topic' started by Jack_Maehoffer, Dec 29, 2005.

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  1. Smoke&Mirrors

    Smoke&Mirrors banned

    Vip is looking for investors. Maybe Uncle Sam will kick in..
  2. lamont5123


    I would not either.

    However, an AMP in lower Manhattan (there are several) would be considered a legitimate enterprise, especially if the business pays taxes and obtains requisite operating permits.
  3. wheninvegas2005


    The amount of abuse that goes on is incredible. I would not be surprised if some AMPs and SP in lower Manhattan got something.
  4. lamont5123


    You really write some offensive things.
  5. vermeer


    Hey, why don't we just give 6-figure payouts to all the niggers in new orleans who drowned? That makes about as much sense as giving $2mil to some broad just because her husband worked at cantor fitzgerald and a 747 flew through his window.
  6. lamont5123



    Well, the lawsuit from the first WTC bombing is still proceeding I believe.

    And not all families received a seven figure payout, either.
  7. vermeer


    What's even more outrageous is 7-figure paydays the 9-11 vicitis familys got.
    Sure it's a tragedy, but people die every day. Why should the governmnet pay? It wasn't their fault. Tough luck. That's what life insurance policys are for. Some of these fuckers get $2 mil, and have been complaining that they deserve more.

    Yes, I understand that it was a pragmatic move to save the airlines and others from years of toxic lawsuits.

    The oklahoma families didn't get paid. neither did the first WTC bombing.
  8. lamont5123


    Yes, this is an example of a different kind of welfare.

    But it rarely evokes the kind of rage that inner city welfare fraud produces.
  9. Jack_Maehoffer


    Thu Dec 29, 2005

    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.

    Money "may have gone to businesses that were not adversely impacted by the terrorist attacks of September 11th or their aftermath," wrote Robert Seabrooks, assistant inspector general for auditing.

    Congress authorized the program in January 2002, and set aside $75 million to cover potential defaults. The program was operated through the Small Business Administration's main loan-guarantee program and the loans were made by participating banks. In all, 8,201 loans were approved totaling $3.7 billion, but only 7,058 were actually paid out.

    Of 42 STAR-loan recipients interviewed by the inspector general's office, just two said they were aware they had obtained a such a loan. In cases where eligibility could not be established, 25 of 34 borrowers interviewed stated they were not adversely affected by the attacks, the report said.


    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.

    Continued ...

    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.

    Senate Small Business Committee Chairwoman Olympia Snowe, a Maine Republican, said her panel would look into the program.

    "If abuses are discovered, many questions must be answered by the parties involved, beginning with how and why was this allowed to happen," she said in a statement.

    SBA said it has told lenders it will not honor guarantees on defaulted loans that fail to document the September 11 link.

    "SBA implemented the STAR program as Congress intended," Administrator Hector Barreto said in a statement.

    The inspector general said it appeared qualified borrowers were not shut out of STAR loans.