The financial fallout from the 9/11 terrorist attacks was substantial in Hawai'i, where tourism, the state's economic engine, was shattered as unemployment and bankruptcy filings surged.

Some 59 small businesses in the Islands took advantage of the U.S. government's $5 billion effort to help them recover from the attacks. Companies here received $6.1 million in low-interest, government-guaranteed loans from two terror-assistance program administered by the Small Business Administration, according to research by the Associated Press.

Many of the Island companies were tourism-related businesses such as tour operators. Others included clothing companies, restaurateurs, a cookie company, flight schools, a graphic-design firm and a toilet maker.

The AP found that nationwide, many of the loans were loosely managed and were handed out to businesses that didn't need terrorism relief.

But some recipients here say the loans were distributed appropriately in this tourism-dependent state where the attacks threw the entire economy into a tailspin.

"It was needed, and it was used appropriately," said Sandra Akina, owner of Akina Bus Service Ltd. and Akina Aloha Tours Inc. on Maui, which used two loans totaling $400,000 to pay bills.

Akina said the loans helped her company weather the tourism downturn and pay for everything from insurance to payments on her vehicles.

Under one program, SBA lent money directly to companies such as Akina's that provided detailed statements on how they were hurt. The other program provided incentives — and guaranteed loans against default — so banks could lend money to companies they determined were hurt by the post-9/11 slump.

Most loans were well below market rates — as low as 4 percent, documents show.

The 59 loans to Hawai'i businesses averaged $104,000 and ranged from $1 million to Maui's Waterway Corp. to as little as $5,000 to Hilo's Frame It! Hawaii.

James Stoeckel, owner of the custom picture-frame shop, said new post-9/11 shipping restrictions implemented by the Federal Aviation Administration delayed his getting materials from the Mainland and strained his one-man business. His shop also suffered because many customers worked in the stricken tourism industry.

He saw an ad for the Sept. 11 emergency loans in a newspaper and decided to apply. Otherwise, he said, "there was a 50-50 chance I would've had to close. It helped tremendously. And it's almost paid off."

But some businesses said they were unaware their loans were drawn from Sept. 11 programs.

"They didn't tell us that. Nor did we request a special fund," said Doug Ewalt, owner of Hawaii Nautical Inc.

According to the SBA, Ewalt's tour-boat company received a $675,000 Supplementary Terrorism Activity Relief (STAR) loan.

Ewalt said he used the money to buy a new boat to expand his tour operations.

He's not alone. Businesses across the country received SBA loans from banks without ever being told about the Sept. 11 connection.

"I just applied for the loan at the bank. I had no idea where the funds came from," said Tom Mayl, who got two SBA 9/11 loans totaling more than $800,000 to open two restaurants in Ohio.

SBA documents obtained by AP show banks had a strong incentive to approve as many loans as possible from the terror program. The banks profited from the interest while incurring little risk because the government guaranteed 75 percent to 85 percent of each loan.

Wells Fargo, the nation's second-largest SBA lender, said the STAR program enabled lenders "to provide funds to ... businesses impacted by 9/11" and the bank "continues to strictly adhere to SBA operational standards."