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John Hollenhorst ReportingWhat do a Utah dentist, a dog motel and a pizza parlor have in common? All of them got low-interest federal loans that were intended for businesses victimized by the 9-11 terror attacks.
In the aftermath of 9-11, Congress approved billions in low-interest loans for businesses "adversely affected." So how did Utah dentist Douglas Howe qualify for one of the loans?
Reporter: "Was your business affected by 9-11?"
Dr. Douglas Howe, Dentist: "No. Hah, hah. Nope."
He took out the loan three years ago to set up his new office. He simply applied at a bank and got it. Until we told him, he never realized it was a 9-11 loan.
Dr. Howe: "I thought it was just a standard small business loan guarantee thing."
Similar loans went to dozens of Utah businesses: The Little Dog Resort, Hogi Yogi sandwiches, a car wash supply company, a pizza place, even a private club. Utah Window Sales got a loan three years ago. The owner didn't know until today it was a 9-11 loan.
Ted Nelson, Owner, Utah Window Sales: "Had not a clue." Reporter: "Now that you know, are you surprised?" "Yes, I am surprised."
Nationally, the government gave out nearly 5 billion dollars worth of loans to thousands of companies, including national chains like Subway and Dunkin Donuts. The program was set up by the Small Business Administration and run by banks with relatively few controls. An SBA audit last week concluded that a majority of the businesses had no impact from terrorism.
Ted Nelson: "IF that was the intent for the money, it would be like being qualified to have a student loan and not be a student."
SBA officials say Congress intended a liberal interpretation to help boost the economy. They dispute claims coming out of New York that business devastated by 9-11 are still waiting for loans while businesses in other states got them.
The SBA says taxpayers did not lose money in the program. The businesses that got the loans have proven to be better than average at paying them back.
