State offers loans
to aid businesses

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Star-Bulletin staff

The state is offering loan programs to boost small businesses suffering losses since Sept. 11, Gov. Ben Cayetano announced yesterday.

The Hawaii Emergency Loan Program will provide up to $50,000 for qualified businesses to meet expenses and help retain employees. The five-year loans will help owners experiencing cash flow problems as a result of the post-Sept. 11 economic downturn, according to a news release.

To be eligible, small businesses must conduct business in Hawaii, have been doing business in Hawaii for at least two years, have no more than 100 employees, and have suffered at least a 15 percent drop in revenues since Sept. 11. There is no prepayment penalty, and payments will be deferred to January 2003.

Businesses may submit a preliminary inquiry form at www.hawaii.gov/dbedt to determine eligibility or call 586-2577.

Businesses with an outstanding loan from the Hawaii Capital Loan Program may be able to refinance the loan because of lower interest rates. Call 586-2576 for information.

The program offers small-business loans for financing construction, land acquisition, equipment, machinery, supplies and working capital.

A program soon to be launched, the Hawaii Capital Access Partnership, will encourage banks to make start-up loans and working capital lines of credit available to small businesses.

Businesses must apply directly to participating lenders. The borrower and lender negotiate all loan terms. Borrower and lender pay a 2 percent to 3 percent fee into a pooled loan reserve account, and the Department of Business, Economic Development & Tourism provides a matching fee into the account.

For more information on the Hawaii Capital Access Partnership program, call 586-2594.