Ka Wai Ola - Office of Hawaiian Affairs, Volume 21, Number 10, 1 October 2004 — OHA loan fund drops two-rejection requirement [ARTICLE]

OHA loan fund drops two-rejection requirement

By Sterling Kini Wong In an effort to make OHA the first plaee Native Hawaiians turn to for business loans, the Board of Trustees in September dropped a requirement that had discouraged people from applying to the agency's Native Hawaiian Revolving Loan Fund (NHRLF). The OHA board voted unanimously to remove the requirement that applicants must first be turned down by two other lending institutions before applying to the NHRLF program. By making the change, the board shifted the focus of the NHRLF from that of a "lender of last resort" to a "lender of first ehoiee" for Native Hawaiian entrepreneurs. "We believe that by shedding the two-denial requirement, a condition that deterred many potential applicants, OHA is not only supporting more Native Hawaiian entrepreneurs, but also helping to create the eeonomie

foundation for our nation," said Trustee Colette Machado. The decision to amend the policy followed a meeting between the board and Quanah Crossland Stamps, commissioner of the federal Administration for Native Americans, whieh has contributed $12.9 million to the OHA loan fund. The NHRLF was created in 1988 to expand business ownership and employment opportunities for Native Hawaiians through lending and entrepreneurial training. The program has the potential to lend out $21 million dollars at any one time, whieh includes the ANA money and matching OHA funds. Since its ineeplion, the NHRLF has disbursed 371 loans totaling $16.1 million. NHRLF loans are limited to $75,000 for up to seven years, with an interest rate that will not exceed the prime rate plus 3 percent. Applicants must complete a business plan, and if they have no background in business, NHRLF will require them to enroll in entrepreneurial classes. Proof of Native Hawaiian ancestry is required. For more information, eall 594-1917. ■