CITY FIRMS STIFFED IN 9/11-LOAN OUTRAGE

By GEOFF EARLE Post CorrespondentMon Nov 7, 6:00 AM ET

WASHINGTON — Struggling city businesses got stiffed by a federal loan program intended to spur economic recovery after the 9/11 attacks — while aid went to a horse farm and doughnut shop upstate, The Post has learned.

Of $84 million that New York businesses received under the program, only $14 million went to city-based companies — and the program is now under investigation to see why so much of the money went to dentists, doughnut shops and beauty parlors that suffered no apparent harm from the Sept. 11 attacks.

"I applied for a loan, and I got a loan — I have no idea how it's related to 9/11," said Prashant Agarwal, who owns a Dunkin' Donuts franchise in upstate Auburn.