State Launches New Program to Increase Access to Capital for Small BusinessesPosted on Jul 19, 2022 in BDSD, CBED, News
DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM
BUSINESS DEVELOPMENT AND SUPPORT DIVISION
DAVID Y. IGE
ACTING EXECUTIVE DIRECTOR
GWEN YAMAMOTO LAU
FOR IMMEDIATE RELEASE
July 12, 2022
STATE LAUNCHES NEW PROGRAM TO INCREASE ACCESSTO CAPITAL FOR SMALL BUSINESSES
HONOLULU – The Hawai‘i State Department of Business, Economic Development & Tourism (DBEDT) today announced the launch of a new program to increase access to credit for small businesses and nonprofits statewide.
Using funds received by the Hawai‘i Technology Development Corporation (HTDC) from the U.S. Treasury’s State Small Business Credit Initiative, the program will support the efforts of local financial institutions to lend funds to small businesses by reducing credit risk.
The Hawai‘i Green Infrastructure Authority (HGIA) will administrator the Hawai‘i Small Business Capital Program (HI-CAP) Collateral Support Program, designed to assist borrowers in obtaining financing that might otherwise be unavailable due to a collateral shortfall, by providing a credit enhancement in the form of cash collateral to participating lenders for eligible loans to eligible businesses and nonprofits.
“According to surveys conducted by our Research and Economic Analysis Division, some 60% of Hawai‘i businesses were closed during the height of the COVID-19 pandemic. Of that, 97.5% of these businesses had less than 100 employees which 76% had less than 10 employees,” said DBEDT Director Mike McCartney. “While businesses have since either fully or partially re-opened, almost 2% of Hawai‘i’s businesses were permanently closed. Helping small businesses access credit not only maintains jobs and supports Hawai‘i’s workforce, but it is also critical for creating new jobs and strengthening Hawai‘i’s economy.”
“We look forward to working with financial institutions statewide to enroll in the HI-CAP Collateral Program to facilitate lending to their small business clients recovering from the pandemic, growing their business and diversifying our economy,” said Gwen Yamamoto Lau, HGIA executive director.
HTDC and HGIA are partnering with local financial institutions to offer this program. For more information, please email firstname.lastname@example.org or visit https://gems.hawaii.gov/hawaii-small-business-capital-program-hi-cap/hi-cap-collateral/
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About Department of Business, Economic Development and Tourism (DBEDT)
DBEDT is Hawai‘i’s resource center for economic and statistical data, business development opportunities, energy and conservation information, and foreign trade advantages. DBEDT’s mission is to achieve a Hawai‘i economy that embraces innovation and is globally competitive, dynamic and productive, providing opportunities for all Hawai‘i’s citizens. Through its attached agencies, the department fosters planned community development, creates affordable workforce housing units in high-quality living environments, and promotes innovation sector job growth.
About Hawai‘i Technology Development Corporation (HTDC)
HTDC is a dynamic state agency responsible for diversifying Hawai‘i’s economy by developing a flourishing technology industry that provides quality, high-paying jobs for Hawai‘i residents. HTDC aims to accelerate the growth of Hawai‘i’s technology industry by providing capital, building infrastructure and developing talent to foster innovation. HTDC is attached to the Department of Business, Economic Development and Tourism (DBEDT).
About Hawai‘i Green Infrastructure Authority (HGIA)
Act 211 (SLH 2013) created the framework to establish a State administered financing authority to democratize clean energy for underserved ratepayers previously locked out of solar. HGIA utilizes innovative financing tools to make green energy accessible and affordable for ratepayers, while leveraging private capital, mitigating risks and reaching new markets. HGIA, Hawai‘i’s Green Bank, is administratively attached to the Department of Business, Economic Development and Tourism (DBEDT).
Gwen Yamamoto Lau
Hawai‘i Green Infrastructure Authority
Hawai‘i Technology Development Corporation