Some Businesses Got Sketchy 'Terrorism-Recovery' Loans

By Paul Foy, AP

Nick Huntsman was grateful for his Small Business Administration loan for companies pummeled by the Sept. 11 terrorist attacks.

In 2001, Huntsman launched Mountain Sunrise Feed in Enterprise to ship compressed hay and alfalfa to dairy cooperatives across Japan and Asia. His newfound customers planned to inspect the quality of the feed on a visit that September when the buying season opened, but the attacks kept them from traveling and they turned to more familiar suppliers instead.

Huntsman, a distant cousin of Utah Gov. Jon Huntsman, was able to refinance on easier terms under a congressionally approved “terrorism recovery” loan of $1.3 million. A poster child for companies that sustained post-Sept. 11 damages, Mountain Sunrise Feed was one of 114 small businesses in Utah to get the loans.

But a review by The Associated Press found the loan program was extended to all kinds of businesses — dentists, a liquor club, gas stations — whether or not they could show an obvious hardship. It turns out banks took the cheap SBA money and lent it on their terms, making their own decisions about who qualified. In many cases bankers never told customers the money was coming from the special terrorism-recovery fund, and some of the businesses said they didn’t get low interest rates or extended terms.

For this complete story, please visit Utah Businesses Got Terror Recovery Loans.