Ka Wai Ola - Office of Hawaiian Affairs, Volume 23, Number 10, 1 October 2006 — OHA to restructure Hawaiian loan fund [ARTICLE+ILLUSTRATION]

OHA to restructure Hawaiian loan fund

Applications for Native Hawaiian Revolving Loan Fund on hold during upgrade By KWO Staff The Office of Hawaiian Affairs is planning significant improvements to its Native Hawaiian Revolving Loan Fund (NHRLF) - including the addition of consumer loans to the program, whieh previously offered only business loans. The changes are slated to take effect in early 2007. Through discussions with the Administration for Native Americans (ANA), the federal agency that has co-funded the NHRLF, OHA is temporarily putting applications on hold for

a few months while restructuring and enhancing the program, whieh will feature a new strategic lending partner. ANA Commissioner Quanah Stamps, who addressed OHA's Board of Trustees about the restructuring process in late August, praised OHA's plans and characterized the strategic lending partner concept as an outstanding innovation. She identified several types of loans that may be offered under the new plan, including business, home improvement and education. Stamps announced February 2007 as the target date for reinstituting the fund. Since 2004, ANA has been calling on OHA to add more loan products, reduce the loan processing time and serve Native Hawaiians as a lender of first resort. Although loan applications will not be accepted during

the transitional period, OHA encourages interested applicants to contact NHRLF staff for program updates. "We know that the short-term ineonvenience to a few borrowers will be offset by long-term exemplary service to the wider Native Hawaiian community," said OHA Administrator Clyde Nāmu'o. For 16 years, the NHRLF has offered business loans with a maximum limit of $75,000 per borrower for a term of no longer than five years. Loans totaling about $18 million have been approved since the program's inception, with about $3 million currently loaned out and approximately $24 million in available funds. Under the restructured plan, the loan fund is expected to fully commit its entire loan portfolio within a few years. Established in 1989, the loan

fund was designed to provide funding not available from other sources, under reasonable terms and conditions, for the purposes of: • Promoting eeonomie activities that expand opportunities for Native Hawaiians to increase their ownership of, employment in, or ineome from loeal eeonomie enterprise; • Assisting Native Hawaiians

to overcome specific gaps in loeal capital markets and to encourage greater private-sector participation in loeal eeonomie development activities; and • Increase capital formation and private-sector jobs for Native Hawaiians. For additional information, eall OHA's Native Hawaiian Revolving Loan Fund office at 594-1924. M

NŪ HOU - NEWS

ANA Commissionner ūuanah Stamps (front left) meets with the OHA Board and administrator. - Photo: Sterling Kini Wong