Ka Wai Ola - Office of Hawaiian Affairs, Volume 8, Number 10, 1 ʻOkakopa 1991 — Congress reviews loan fund program [ARTICLE]

Congress reviews loan fund program

Since its inauguration as, a five-year demonstration project in November 1987, the OHA Native Hawaiian Revolving Loan Fund has provided $2.9 million in loans to 74 Native Hawaiian entrepreneurs in Hawai'i to start or expand their own businesses. Funding for the loans was provided under a grant from the Administration for Native Americans (ANA) with the U.S. Departments of Health and Human Services. As the loan fund project nears the end of its demonstration period, an evaluation reportis now being prepared by ANA for presentation to Congress by the end of November. Findings of the report will be made public at that time, according to Darryl Summers, ANA program specialist. He is responsible for overseeing and monitoring ANA grants to Pacific organizations in Hawai'i, American Samoa, Guam, the Commonwealth of the Northern Manana Islands, Republic of Saipan, as well as the western states of California, Nevada and Arizona. Summers was in Hawai'i recently to conduct site visits on current grants here and in American Samoa. His visit followed a six-month evaluation of the OHA revolving loan fund done this summer by an independent ANA-selected contractor. The evaluation team met with OHAadministrators, loan fund officers, loan recipients and persons who applied but did not receive loans. Their purpose was to assess administration and management, effectiveness, results and benefits of loans made to the Native Hawaiian business community and to assess the impact of the project on the non-Hawaiian business community. The future of the OHA Native Hawaiian Revolving Loan Fund will be decided by Congress late this years, as part of its review to reauthorize the Native Amenean Programs Act. The act allows ANA to provide grants, training and technical assistance to Native Americans, including Native continued page 23

Loan fund review

from page 3 Hawaiians, for social and eeonomie development projects. ANA also provides grants in governance to strengthen native leadership groups. While the NHRLF reauthorization decision is pending in Congress, the loan fund demonstration project is now in a 14-month period to scale down activities. While Summers would not comment specifically on his impression of the effectiveness of the OFIA Native Hawaiian Revolving Loan Fund, his general impression is it seems to be operating very satisfactorily and that he is encouraged by "almost overwheIming" amount of

He said the loan fund may have had some effect in encouraging Hawaii's loeal commercial lenders to enter into participation loans with the NHRLF in instances where loans would otherwise have been declined. One criteria of eligibility to apply for OHA revolving loans is denial of a loan applieahon by two major lending institutions. Regardless of Congress' decision this year, the OHA NHRLF will eonhnue up to November 1992. However, extension beyond that is up to Congress. OHA provided testimony in February this year to hearings on reauthorization of the Native American Programs Act, and has furnished information on the status of the project upon request.

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