In your second example the terminating " is missing.
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);
}