Government Guaranteed Loans

HEDCO Local Development Corporation is a Certified Development Company (CDC), licensed and regulated by SBA. It is a non-profit corporation promoting economic development in Hawaii and the Pacific Islands through long-term fixed-rate financing of plant and equipment for small businesses. This corporation is an affiliate of Hawaii Economic Development Corporation.

The Hawaii Community Development Authority (HCDA) officially started its Kakaako Business Relocation Program with the participation of Hawaii National Bank. Under this program, loan funds are made available to qualified businesses displaced from the Kakaako area. The Program permits loan funds to be used for moving and re-establishment costs.

This program promotes the agricultural development of the State by making more credit available to qualified farmers, partnerships, corporations and agricultural cooperatives. The State Department of Agriculture operates a revolving fund which can be used to supplement private and federal funds or, when necessary, make direct loans.

• USDA Business & Industrial Guaranty Program
  The USDA B&I program is designed to provide loans to businesses located in rural areas (as defined by the USDA). USDA will guaranty 90% of loans of $5 million or less. The maximum loan to any one borrower is $25 million, with a lower tiered guaranty rate. Loan maturities are usually 7 years for working capital, 15 years for machinery and equipment, and 30 years for land, building and permanent fixtures.
• USDA-Farm Service Agency

The SBA is a federal agency providing financial assistance to small businesses and requiring longer repayment terms. SBA loans are used to finance construction or modernization of facilities, purchasing machinery or equipment or increasing permanent working capital. SBA guarantees up to 85% of the financing. Types of SBA loans are