You should use $dbh->quote($line) to ensure that the quoting is correct. This incidentally guards against SQL-injection attacks. You need a chomp to remove the trailing newline in $line

You should write something like (untested):

my @lines = <DATA>;
my $line;
foreach $line ( @lines ) {
  chomp($line);
  #prepare and execute SQL statement
  $sqlstatement="SELECT Table1.Name,  Table1.Address, Table1.City, 
                        Table1.State, Table1.ZIP,     Table1.Phone 
                   FROM Table1 WHERE Table1.BusType = ".$dbh->quote($l
+ine);
  $sth = $dbh->prepare($sqlstatement);
}
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