Ka Wai Ola - Office of Hawaiian Affairs, Volume 14, Number 12, 1 December 1997 — OHA offers Micro-enterprise Loans for small businesses [ARTICLE+ILLUSTRATION]

OHA offers Micro-enterprise Loans for small businesses

By Paula Durbln f UPPOSE YOU want to l operate out of your home as a caterer, a puhlie rela1 tions consultant, an auto W meehanie. Or you would like to market and distribute software you have created. Or

maybe you are thinking of setting up a resale boutique. Or you might already have a successful home-based operation and are ready to expand. These ideas were on the minds of students who attended microenterprise training programs across O'ahu in recent months.

They might also represent the kind of creativity and initiative banks don't like to fund unless the borrower already has adequate collateral and a business track record. However, the Native Hawaiian Revolving Loan Fund ean assist first-time entrepreneurs with micro-enter-prise loans for amounts under $10,000 amortized over no more than five years. "It's not a grant," OHA loan officer Gerald Honda clarified. "We fully expect to be repaid." The first step in applying for a micro-enterprise loan is to eomplete the training whieh, in 33 hours of class spread over two weeks, covers the basics of business plans, taxes, business organizations, pricing, payroll, ineome and expense statements, balance sheets, negotiation and the difference between sub-con-tractors versus employees. The course is organized by Grant Thomton, ine., an intemational accounting and management consulting firm with 400 loea-

tions around the world and nine years of previous experience with the Minority Business Development Center, a national program funded by the Department of Commerce. Completing Grant Thomton's first micro-enterprise training

program at the Kaneohe YWCA in October were nine potential micro-entrepre-neurs along with one established home businesswoman, Cynthia Hanakahi. Her company, called T.J. Hardi after her husband, her daughter and herself, supplies architectural hardware and specialty items, currently from her home and a warehouse. "My goal is to operate from a more commercial area," Hanakahi said. "By attending

this class I have a better foundation for putting it all together." Most of the others will finish their business plans by Jan. 1, said the instmc-

t tor, Jean Williams, who offered the next course in Waianae. Upcoming training sessions will be held at Honolulu Richards Street YWCA beginning Jan. 12 with classes scheduled 6-9 p.m. Monday, Wednesday and Thursday evenings.

Another session starts Feb. 17 in the KahukuHaoula area. For information, eall Williams at 5360066. At this point, the steps for ~ applying for a micro-enterprise loan are the same followed in applying for a bigger loan. But Honda expects the process to be streamlined with some requirements eliminated. Speaking at the Kaneohe group's final meeting, Honda encour-

aged the participants to apply for a micro-enter-prise loan. "Our mission is to help Hawaiians create successful businesses." ■

Microentrepreneur trainees take time out for a graduation day photo op with OHA loan officer Gerald Honda and Eeonomie Development officer Chris van Bergeijk (both wearing leis). PHOTOS: PAULA DURBIN

"My goal is to operate from a more commercial area,"

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