Ka Wai Ola - Office of Hawaiian Affairs, Volume 12, Number 3, 1 Malaki 1995 — Loan board updates lending rules [ARTICLE]

Loan board updates lending rules

Since 1989, the Native Hawaiian Revolving Load Fund has been providing opportunities for Hawaiian entrepteneurs that would have bcen impossible with traditional financing mechanisms. In fiscal 1994 alone 69 loans weie approved totaling over S3 million. These loans supported a variety of business activitics lfom poi making to designing mu'umu'u. The program began wifh a S3 million authodzation trom the Administration for Native Americans (ANA), money that was reauthorized in 1992 and Iater matched by the Office of Hawaiian Afifairs. The reautliorization period is due to expire in September of 1995. In discussions witli OHA, the ANA continues to expess support for the program and has introduced legLslation in Congress to eonunue funding. It is not certain - especially given the present congressional climate - that the program will continue to receive federal stippori, but OHA is working closely with the ANA to see that this happens. To ensure that loan money continues to serve as m<uiy projccts as possible until the new reauthorization period, the Native Hawaiian Revolving Loan Fund advisory board has revised some of the progranfs loan guidelincs. In its Jan. 26 meeting the board voted to: • make $75,000 the maximum sum anv applicant could receive. • require a 20 percent cash investment for any new restaurant or eommei eial cliarter/flshing loan, and a 15 percent cash investment for major truck and tractor loans. The board also said it would give priority to employers who hire the largest number of loeal applicants, preferably native Hawaiians. NHRLF recipients have already created over 700 new jobs. OHA continues to be committed to Hawaiian businesses across the state and hopes the changes will help more entrepreneurs take advantage of the opportunities provided by the loan fiind. The new guidelines will not aflect individuals who put in an applieahon before Jan. 26.