Computer glitches hold up Katrina checks

WASHINGTON – Government inspectors trying to help victims of Hurricane Katrina say they are running into a second disaster: a balky new computer system that is delaying low-interest loans for homeowners and businesses.

Of 28,488 emergency loan applications that had been received from the hurricane zone by Wednesday, just one check had been sent, Small Business Administration figures show. The SBA’s goal is to disburse emergency loan money within 21 days of an application.

Because of the new computer system, paperwork that once took 30 minutes now takes hours, workers for the SBA say. And the network that connects inspectors with their offices is frequently down.