Ka Wai Ola - Office of Hawaiian Affairs, Volume 5, Number 11, 1 November 1988 — Loans For Hawaiian Business OHA's Newest Program [ARTICLE+ILLUSTRATION]

Loans For Hawaiian Business OHA's Newest Program

On October 3, the Office of Hawaiian Affairs received notice that it was chosen to administer a new federally-funded $3 million Native Hawaiian Revolving Loan Fund Demonstration Project. The four-year program will provide loans to Hawaiian business men and women who otherwise would be unable to qualify for loans to start, expand or improve their own businesses. The Bank of Hawaii will join OHA in this project by providing technical assistance and advice. OHA will cover all administrative costs, so all of the $3 million will be made available for loans, starting in the spring of 1989. Funding is provided by the Administration for Native Americans (ANA), the federal agency that is well known for providing grants to Hawaiian organizations for social and eeonomie development projects. This is the first revolving loan fund established solely for Hawaiians, so OHA will be starting from scratch. Details for administering the program are still to be worked out but certain guidelines are already set: • Loans will be made for business purposes only. • Loans will be made to Hawaiians regardless of blood quantum. • The program targets those Hawaiians who cannot obtain other loans. • Loans will be for a maximum of five years. • The business receiving the loan must be 100 percent Hawaiian-owned. • The interest rate will be 2 percent below the Treasury Bill rate.

By targeting those Hawaiians with good business potential who would not normally qualify for a business loan, this project is amajor step in OHA's efforts to promote Hawaiian-owned businesses. OHA Chairman Louis Hao said the program gives Hawaiians a ehanee for eeonomie well-being and self-determination. He went on to point out how this program and OHA's entrepreneurship

training workshops are providing a solid foundation for many Hawaiian businesses. In the first six months of the project, all policies, procedures, and guidelines will be developed and submitted to the Commissioner of ANA for approval. lt will be during this planning stage that the actual loan application forms will be designed. see Revolving Loan, page 5

Bank of Hawaii Vice President Larry Johnson joins OHA Chairman Louis Hao in announcing the new revolving loan program for Hawaiian business men and women.