Ka Wai Ola - Office of Hawaiian Affairs, Volume 20, Number 8, 1 ʻAukake 2003 — Native Hawaiian Revolving Loan Fund Small Business of the Year awardee inspires conference attendees [ARTICLE+ILLUSTRATION]

Kōkua No ke kikokikona ma kēia Kolamu

Native Hawaiian Revolving Loan Fund Small Business of the Year awardee inspires conference attendees

By Sterling Kini Wong The success story of Rebecca Kawehi Inaba, owner of a Kona-based flight service and recipient of the Native Hawaiian Revolving Loan Fund's 2003 Small Business of the Year award, gave inspiration to hopeful and beginning Native Hawaiian entrepreneurs participating in OHA's fourth annual Small Business Conference. The NHRLF conference provided an opportunity for entrepreneurs to learn critical business strategies and to network with bankers and other business owners. "The conference was very informative. It provided inspiration to loeal people and gave them a kiek start to go through with their dreams," said Inaba, an NHRLF loan recipient and owner of Mokulele Flight Services. Inaba's fledgling tour and interisland flight service business struggled because she failed to qualify for a loan from two finaneial institutions in order to expand her business, whieh at the time was operating with only one threepassenger Cessna 172 and four employees, and showing total revenues of $44,000. In 1999, Inaba received a $75,000 NHRLF loan and used it to purchase a Cessna aircraft; since then her business has taken off. Nearly 250 business-loan applicants, bankers and small business owners participated in the conferenee, held on June 27 at the Hawai'i Convention Center. The conference was geared towards educating and training promising business-loan applicants and current loan recipients for the problems that beginning small business owners often encounter. Included in the conference, whieh was themed "Holomua a Lanakila," or "advanc-

ing toward victory," were workshops on marketing on a tight budget, starting up a business and making management decisions. The NHRLF, whieh is administered by OHA and federally funded by the Administration for Native Americans, provides entrepreneurial training, assistance and lending to Native Hawaiian-owned businesses that have failed to qualify for loans from at least two financial institutions. The purpose of the program is to expand business ownership and employment opportunities for Native Hawaiians. With OHA matching all federal funds, the NHRLF has the capacity to lend over $22 million, more than any other alternative program in the state. The program is a revolving loan in the sense that as recipients pay back loans, the monies are re-circulated into the fund, affording other Native Hawaiians finaneial opportunity. Applicants may receive a loan for as mueh as $75,000 for up to seven years, with an interest rate that will not exceed the prime rate plus 3 percent. Since its inception in 1987, the

NHRLF has approved 418 loans totaling more than $18 million and provided training and technical assistance to 4,000 beneficiaries. NHRLF has 11 contracted consultants that provide statewide coverage for training and technical assistance. The fund has helped nurture a wide variety of Native Hawaiian businesses such as farming, fishing, construction firms, restaurants and retail shops. Dean Oshiro, an NHRLF loan officer, said that it is difficult starting and maintaining a small business in Hawai'i. He said NHRLF's goal is to provide reassurance, hope and to boost motivation for small business owners. "NHRLF is a stepping stone for small business," Oshiro said. "Our purpose is to help small businesses expand and graduate to loans from banks." Award-winner Inaba commended the NHRLF program and stressed the importance of recipients paying back their loans. "Getting an OHA loan is an opportunity for us and we need to be responsible and pay it back," Inaba said. "If you don't pay

it back you're affecting another Native Hawaiian's opportunity. This is not a free ride." ■

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Pā'oihana

a m ■ -r * \ ī ■■n lnaba in front of one of her Mokulele Flight Services fleet. Photo: caroiine McDonaid