David Y.Ige | DBEDT press release: THE STATE LAUNCHES A NEW PROGRAM TO INCREASE ACCESS TO CAPITAL FOR SMALL BUSINESSES

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DBEDT press release: THE STATE LAUNCHES A NEW PROGRAM TO INCREASE ACCESS TO CAPITAL FOR SMALL BUSINESSES

Published on Jul 12, 2022 in Latest news from the department, Press room

HONOLULU – The Hawai’i Department of Business, Economic Development and Tourism (DBEDT) today announced the launch of a new program aimed at increasing access to credit for small businesses and non-profit organizations. statewide nonprofit.

Using funds received by the Hawai’i Technology Development Corporation (HTDC) from the U.S. Treasury’s 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 administer the Hawai’i Small Business Capital Program (HI-CAP) Collateral Support Program, designed to help borrowers secure financing that may otherwise not be available due to a lack of collateral, by providing credit enhancement in the form of cash collateral to participating lenders for eligible business and nonprofit loans.

“According to surveys conducted by our Research and Economic Analysis Division, approximately 60% of Hawaiian businesses were closed during the height of the COVID-19 pandemic. Of these, 97.5% of these companies had fewer than 100 employees, 76% of which had fewer than 10 employees,” said DBEDT Director Mike McCartney. “While businesses have since fully or partially reopened, nearly 2% of businesses in Hawaii have been permanently closed. Helping small businesses access credit not only helps maintain jobs and sustains Hawaii’s workforce, it’s also critical to creating new jobs and strengthening Hawaii’s economy.

“We look forward to working with financial institutions across the state to enroll in the HI-CAP Guarantee Program to facilitate lending to their small business clients recovering from the pandemic, grow their business and diversify our economy,” said Gwen Yamamoto Lau, executive director of HGIA.

HTDC and HGIA partner with local financial institutions to offer this program. For more information, please email [email protected] or visit https://gems.hawaii.gov/hawaii-small-business-capital-program-hi-cap/hi-cap-collateral/

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About the Department of Business, Economic Development and Tourism (DBEDT)

DBEDT is Hawaii’s resource center for economic and statistical data, business development opportunities, energy and conservation information, and foreign trade benefits. DBEDT’s mission is to achieve a Hawaiian economy that embraces innovation and is globally competitive, dynamic and productive, providing opportunity for all Hawaiian citizens. Through its attached agencies, the ministry promotes planned community development, creates affordable workforce housing in high-quality living environments, and promotes job growth in the employment sector. innovation.

About Hawaii Technology Development Corporation (HTDC)

HTDC is a dynamic state agency charged with diversifying Hawaii’s economy by developing a thriving technology industry that provides quality, well-paying jobs for Hawaii residents. HTDC aims to accelerate the growth of Hawaii’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 the Hawaii Green Infrastructure Authority (HGIA)

Law 211 (SLH 2013) created the framework to establish a state-administered funding authority to democratize clean energy for underserved ratepayers previously excluded from solar power. HGIA uses innovative financing tools to make green energy accessible and affordable for ratepayers, while mobilizing private capital, mitigating risk, and reaching new markets. HGIA, Hawaii’s Green Bank, is administratively attached to the Department of Business, Economic Development and Tourism (DBEDT).

Media contacts:

Gwen Yamamoto Lau

Hawaii Green Infrastructure Authority

(808) 587-2690

[email protected]

Ellen Ng

Hawaii Technology Development Corporation

(808) 539-3839

[email protected]

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