Ka Wai Ola - Office of Hawaiian Affairs, Volume 6, Number 11, 1 November 1989 — First loans go out to Hawaiian businesses [ARTICLE+ILLUSTRATION]

First loans go out to Hawaiian businesses

Ed Miehelman Public Information Officer More Native Hawaiians are joining the ranks of independent business men and women thanks to a demonstration project funded by the Administration for Native Americans. The $3 million, four-year Native Hawaiian Revolving Loan Fund (NHRLF) is being administered by the Office of Hawaiian Affairs. NHRLF targets Hawaiians who want to start, expand, or improve their own business, but are unable to qualify for loans at conventional institutions. Loans are made for a maximum of five years at an interest rate whieh is 2 percent below the Treasury Bill rate at the time of the loan. Since opening for business early this year, NHRLF has received over 1,700 inquiries and 280 formal applications for loans. All applications are screened by project staff and a three-member loan review eommittee. The NHRLF board of directors approves and monitors eaeh loan. Eaeh recipient receives individualized technical business assistance geared to their needs. The very first loan recipient was Ernest K. Kanekoa, president of Continental Services, ine., a 7-year-old firm providing guard services to government and private sector clients. Kanekoa received a $50,000 working capital loan whieh will be repaid in five years. His company employs 40 full-time and 10 part-time workers, more than half of whom are Native Hawaiians. Kanekoa, 50, retired from the Honolulu Poliee Department with the rank of lieutenant after 25

years of service. While a member of the Honolulu Poliee Department, he attended Chaminade University in Honolulu and earned a Bachelor of Science degree in Justice Management. Kanekoa says he is honored to be the first NHRLF recipient and hopes to pay off the loan before it becomes due. He says the money will enable him to better compete with larger guard service firms. For instance, it will make it easier for him to bid on government contracts with bonding requirements. Kanekoa praised both the Office of Hawaiian Affairs and Administration for Native Americans for providing the means to help Native Hawaiians achieve self-sufficiency. In addition to the Kanekoa loan, NHRLF has now disbursed five other loan checks, totalling $203,600. Seven other loans totalling $230,500 have been approved and were to be closed in October. Other recipients in the first group of loans are: • A school of gymnastics; $26,000 for gym equipment and working capital. • A commercial fisherman; $30,000 to purchase his own fishing vessel and for working capital. • A painting contractor; $17,600 for bonding in order to become a licensed contractor and for equipment. • A bookkeeping/word processing company; $30,000 for equipment and working capital. • A tropical fruit farmer; $50,000 for equipment and working capital.

Ernest Kanekoa discusses procedure with employee at his Continentai Services, ine. security firm (above).

i e o E -e u 2 s\ O j B j