State Launches New Program to Increase Access to Capital for Small Businesses

Posted on Jul 12, 2022 in News

Hawaii Technology Development Corporation
Hawaii Green Infrastructure Authority
For Immediate Release: July 12, 2022

HONOLULU—The Hawaii State Department of Business, Economic Development & Tourism (DBEDT) today announced the launch of a new program to increase access to credit for small businesses and nonprofits statewide.

Using funds received by the Hawaii Technology Development Corporation (HTDC) from the U.S. Treasury’s State 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 Hawaii Green Infrastructure Authority (HGIA) will administrator the Hawaii Small Business Capital Program (HI-CAP) Collateral Support Program, designed to assist borrowers in obtaining financing that might otherwise be unavailable due to a collateral shortfall, by providing a credit enhancement in the form of cash collateral to participating lenders for eligible loans to eligible businesses and nonprofits.

“According to surveys conducted by our Research and Economic Analysis Division, some 60% of Hawaii businesses were closed during the height of the COVID-19 pandemic. Of that, 97.5% of these businesses had less than 100 employees which 76% had less than 10 employees,” said DBEDT Director Mike McCartney. “While businesses have since either fully or partially re-opened, almost 2% of Hawaii’s businesses were permanently closed. Helping small businesses access credit not only maintains jobs and supports Hawaii’s workforce, but it is also critical for creating new jobs and strengthening Hawaii’s economy.”

“We look forward to working with financial institutions statewide to enroll in the HI-CAP Collateral Program to facilitate lending to their small business clients recovering from the pandemic, growing their business and diversifying our economy,” said Gwen Yamamoto Lau, HGIA executive director.

HTDC and HGIA are partnering with local financial institutions to offer this program. For more information, please email dbedt.hicap-loans@hawaii.gov or visit gems.hawaii.gov/hawaii-small-business-capital-program-hi-cap/hi-cap-collateral/.

# # #

About 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 advantages. DBEDT’s mission is to achieve a Hawaii economy that embraces innovation and is globally competitive, dynamic and productive, providing opportunities for all Hawaii’s citizens. Through its attached agencies, the department fosters planned community development, creates affordable workforce housing units in high-quality living environments, and promotes innovation sector job growth.

About Hawaii Technology Development Corporation (HTDC)
HTDC is a dynamic state agency responsible for diversifying Hawaii’s economy by developing a flourishing technology industry that provides quality, high-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 Hawaii Green Infrastructure Authority (HGIA)
Act 211 (SLH 2013) created the framework to establish a State administered financing authority to democratize clean energy for underserved ratepayers previously locked out of solar. HGIA utilizes innovative financing tools to make green energy accessible and affordable for ratepayers, while leveraging private capital, mitigating risks 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

Ellen Ng
Hawaii Technology Development Corporation
(808) 539-3839