Just Above Sunset
September 11, 2005 - Not Hurricane Related
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As if the administration
didn't have enough to worry about, Friday, September 9, the Associated Press is reporting this: Companies Got Unneeded 9/11 Loans - byline Frank Bass and Dirk Lammers. (Someone is really named Dirk?) The pattern of lending
left many at New York's Ground Zero seething, especially those who had trouble getting government assistance. Oops. The Small Business
Administration said it first learned of the problems through this AP review - and they are "weighing whether an investigation
was needed." And AP reports that SBA officials declined comment on documents showing one of their top officials promised banks
back in 2002 that there would be a no-questions-asked approach the these "below market" (really low interest) relief loans.
This Supplementary Terrorism Activity Relief effort left banks to determine who should get loans. Why would the government
care? Congress originally required that the loans go only to companies that could demonstrate they suffered direct or indirect
harm from the terror attacks, but the congress was slapped down. Wachovia and Wells Fargo "declined to say" how many loans
they shifted into the terror relief program, saying only that they followed the law. Some law. Heck, they profited from the
interest - the government guaranteed up to eighty-five percent of each loan total, leaving them with little or no risk. Gordie Barnes, who received
a $1.49 million loan to buy the Williams Garden Center in New Bern, N.C., said the previous owners had mentioned that business
was dropping off, but not necessarily because of the attacks. Oh well, business picked
up. And some folks said the
loans made sense: • Karl Grimmelmann,
general manager of KBFS-AM "Hit Kickin' Country" in Belle Fourche, S.D., borrowed $135,000 from SBA's disaster program after
learning about it from a news release. He said his station was forced to pay more money to cover national news and also lost
advertisers. Ah, Saint Croix is a wonderful place and maybe Christine has a point. But there is this little problem AP reports - taxpayers have been forced to cover about
six hundred "defaulted disaster loans - some approaching one million dollars each - from companies that went bankrupt or closed."
And more defaults are expected. The Baghdad International
Airport, Iraq's only reliable link to the outside world, was closed Friday in an embarrassing pay dispute between the government
and a British security company. Is the AP picking on the
Bush team by using the word "embarrassing" in their text? They admit there are only about fifteen civilian flights each day
there - Iraqi Airways, Royal Jordanian Airlines and three companies operating out of the United Arab Emirates - Jobotier,
Ishtar and Tigris airlines. This may not be a big deal. Global said its workers
would continue securing the facility but had suspended other operations because the Transportation Ministry, which owns the
airport, was six months behind in payments. All flights in and out of Baghdad were suspended, it said. We don't have the troops
to take over for Global, and Global also manages security for the Green Zone in central Baghdad. We're doing this on a shoestring.
The U.S. will halt construction
work on some water and power plants in Iraq because it is running out of money for projects, officials said Wednesday. One contractor has stopped
work on six of eight water treatment plants they were supposed to get running. And even the Republicans are piling on. The
Times quotes representative Jim Kolbe, a Republican representing Arizona, saying the Bush administration's vision for
using reconstruction funds to stabilize Iraq "was largely a chimera, a castle built of sand. Reconstruction in Iraq has been
slower, more painful, more complex, more fragmented and more inefficient than anyone in Washington or Baghdad could have imagined
a couple of years ago." And he's chairman of the house appropriations subcommittee on foreign operations. We didn't take that into
account. __ On
the loan business above, late Friday, this: Congress will investigate the "flagrant abuse" of a federal loan program designed to help businesses recover from
the Sept. 11 attacks and make sure such problems don't occur with Hurricane Katrina relief, a key Senate Republican announced
Friday. Sen. Olympia Snowe, R-Maine, chairwoman of the Senate Small Business and Entrepreneurship Committee, announced the
investigation in response to an Associated Press story Thursday that showed the federal program 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
apparent widespread abuse of loans provided through the Supplemental Terrorist Activity Relief Act is nothing short of an
outrage," Snowe said. … If
you read the whole thing, the Democrats rant, Snowe and a few Republican feel they have to act on it, and the SBA folks say
it's all a misunderstanding. |
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This issue updated and published on...
Paris readers add nine hours....
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