The state Department of Business, Economic Development &Tourism on Tuesday announced the launch of a new program to increase access to credit for small businesses and nonprofits.
Using funds received by the Hawaii Technology Development Corporation from the U.S. Treasury’s State Small Business Credit Initiative, the program will support the efforts of local financial institutions to lend funds to small businesses by reducing credit risk.
The Hawaii Green Infrastructure Authority will administrator the Hawaii Small Business Capital Program (HI-CAP) Collateral Support Program, designed to assist borrowers in obtaining financing that might otherwise be unavailable due to a collateral shortfall, by providing a credit enhancement in the form of cash collateral to participating lenders for eligible loans to eligible businesses and nonprofits.
“According to surveys conducted by our Research and Economic Analysis Division, some 60% of Hawaii businesses were closed during the height of the COVID-19 pandemic. Of that, 97.5% of these businesses had less than 100 employees (and) 76% had less than 10 employees,” DBEDT Director Mike McCartney said in press release.
“While businesses have since either fully or partially reopened, almost 2% of Hawaii’s businesses were permanently closed. Helping small businesses access credit not only maintains jobs and supports Hawaii’s workforce, but it is also critical for creating new jobs and strengthening Hawaii’s economy.”
HTDC and HGIA are partnering with local financial institutions to offer this program. For more information, please email dbedt.hicap-loans@hawaii.gov or visit https://tinyurl.com/bdhhfm5r.