NEW ORLEANS - A U.S. Small Business Administration watchdog says the agency canceled nearly 12,000 loans to residents affected by the 2005 Gulf Coast hurricanes over two weeks last September.
The SBA inspector general's office said the cancellations were an effort to help clear a backlog of approved, but undisbursed, loans.
Of those, the inspector found that 8,000 loans were canceled without notice. In some cases, the report said that a data system quirk caused agency records to indicate erroneously that the would-be borrowers asked for the cancellations.
The draft report -- dated Tuesday, July 24 and obtained by The Associated Press -- said most of the affected applicants planned to use the money to rebuild after hurricanes Katrina, Rita or Wilma. MagazineLane.com
The SBA inspector general's office said the cancellations were an effort to help clear a backlog of approved, but undisbursed, loans.
Of those, the inspector found that 8,000 loans were canceled without notice. In some cases, the report said that a data system quirk caused agency records to indicate erroneously that the would-be borrowers asked for the cancellations.
The draft report -- dated Tuesday, July 24 and obtained by The Associated Press -- said most of the affected applicants planned to use the money to rebuild after hurricanes Katrina, Rita or Wilma. MagazineLane.com
