Ka Wai Ola - Office of Hawaiian Affairs, Volume 30, Number 9, 1 September 2013 — Small businesses ean grow with a Hua Kanu loan [ARTICLE+ILLUSTRATION]

Small businesses ean grow with a Hua Kanu loan

By Mary Aliee Ka'iulani Milham OHA's Native Hawaiian Revolving Loan Fund is casting seed money far and wide with a second round of lending from its Hua Kanu business loan program that's set to disperse nearly $4 million to as many Native Hawaiian-owned businesses as possible. The Hua Kanu, or "seed planting,"

program, was created to help existing Native Hawaiian businesses expand. "We want the Native Hawaiian business community to know about it, that we are here and we want to help them," says Winfred W. Cameron Jr., NHRLF manager. Native Hawaiian business owners are encouraged to get their applications in as soon as possible.

The loans will be processed as applications are received. Onee all funds are allocated, the program will be on hiatus while the loan fund rebuilds. "Ideally, we'd like to get as many applicants as possible," says Cameron. "The more businesses we ean help, the better. And the sooner we ean help them, the better for everybody." Since the program's relaunch in mid-June, six Native Hawaiian businesses - a grocer, a retailer, a construction-re-lated company, a distributor and a nonprofit - have submitted loan applications totaling $2.6 million.

Compared with NHRLF's Mālama business loan product, whieh tops out at $100,000, Hua Kanu allows forloans from $200,000 up to $1 million. "Our lending criteria are a little more flexible," says Cameron. "Our loan term is seven years versus most of the banks would probably be about five years max." With a built-in technical assistance program, the application process is also user friendly. Solutions Pacific, a technical assistance

provider for NHRLF, provides assistance ranging from gathering required documents to filling out the application forms. "Our role is really to be a support system for potential borrowers and beneficiaries who are interested in applying or interested in leaming more about the program," says Rebecca Soon, Solutions Pacific's chief operations officer. SEE HUA KANU ON PAGE 13

HUA KANU BUSINESS LOAN Term loans or lines of credit up to $1 million at 6.25 percent interest are available on a first-come, first-served basis. For more details, please visit www. oha.org/huakanu.

Winfred Cameron Jr., right, manager of the Native Hawaiian Revolving Loan Fund, and Rebecca Soon, chief operations officer of Solutions Pacific, whieh guides potential borrowers on the applieahon process. - Photo: OHA Communications

HABITAT Continued from page 5 build the house, many of them because they knew the mother was ill. And she was so thankful." In the family's previous home, the mother's bed sat over a huge hole in the floor. "Being handicapped, like she was, it was very dangerous," Lilley said. "It was a really good day when we could say you ean move into this new house now." At the end of every home build, a volunteer takes the family on a tour of the house, telling them about the appliances, product warranties and to plan for projected maintenance, such as repainting the home in five to 10 years. As recipients of a Habitat for Humanity home, families must eontribute "sweat equity." They leam how to build the walls and replace windows. The hope is that they will take care of their homes, so that they will be in good shape when they pass them down to their children.

Most people that have rented all their lives don't need to save money for home repairs, and don't think about it. If something breaks, they eall the landlord. "Here there's no landlord to eall," says Lilley. "You're it." Hawai'i Habitat provides home repair and Ananee classes, encouraging families to put money away, because the refrigerator is not going to last forever, the roof will need to be replaced and the flooring will eventually wear out. By saving a little every month while their home is new, they will have the money to take care of their homes and family when they need it. Lilley said most of the families Hawai'i Habitat currently serves are Native Hawaiian families on homesteads because they have access to land. However, Habitat is always looking for other families that either have leasehold land or own their own property and haven't been able to build. Hawai'i Habitat's goal is to buy property and build for all low-ineome families.

To partner with Habitat, families must meet several requirements. They must show need, have a substandard home, contribute hours of sweat equity and be willing to pay a mortgage. Families pay a 20- to 30-year mortgage, no interest, for the cost of the building. This is often financed by Habitat's statewide umbrella organization, but Hawai'i Habitat has a contract with the Department of Hawaiian Home Lands for federal funding from the Native American Housing Assistance and Self-Determination Act, whieh is financing 100 percent of the homes that go through that project. The contract with DHHL encourages the whole neighborhood to get involved in order to build a sense of community. The partnership means more than 100 homes could be built over the next three or four years. There is a eall for volunteers within the neighborhoods as well as on Hawai'i Habitat's website, www.hawaii habitat.org. ■