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The Maui News
A new program launched by the state on Tuesday aims to increase access to credit for small businesses and nonprofits statewide.
The Hawaii Small Business Capital Program Collateral Support Program, known as HI-CAP, is designed to assist eligible small businesses and nonprofits in obtaining financing by providing cash collateral to participating lenders, according to the state Department of Business, Economic Development and Tourism.
A total of $6.5 million is currently available from funds received by the Hawaii Technology Development Corporation from the U.S. Treasury's State Small Business Credit Initiative.
DBEDT Director Mike McCartney said that department surveys found that some 60 percent of Hawaii of Hawaii businesses closed during the height of the COVID-19 pandemic, with 97.5 percent of those businesses employing fewer than 100 employees and 76 percent having fewer than 10 employees.
"While businesses have since either fully or partially reopened, almost 2 percent of Hawaii's businesses were permanently closed," McCartney said. "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."
The Hawaii Technology Development Corporation and Hawaii Green Infrastructure Authority are partnering with local financial institutions to offer this program.
For more information on eligibility and how the program works, email dbedt.hicap-loans@hawaii.gov or visit gems.hawaii.gov/hawaii-small-business-capital-program-hi-cap/hi-cap-collateral/.