(a) The department shall establish a capital access program to assist a participating financial institution in making loans to businesses and nonprofit organizations that face barriers in accessing capital.

Terms Used In Hawaii Revised Statutes 211D-3

  • Capital access loan: means a loan that is entitled to be secured by the fund. See Hawaii Revised Statutes 211D-1
  • Department: means the department of business, economic development, and tourism. See Hawaii Revised Statutes 211D-1
  • Financial institution: includes a bank, trust company, banking association, savings and loan association, mortgage company, investment bank, credit union, or nontraditional financial institution. See Hawaii Revised Statutes 211D-1
  • Fund: means the Hawaii capital loan revolving fund established in section 210-3. See Hawaii Revised Statutes 211D-1
  • Loan: includes a line of credit. See Hawaii Revised Statutes 211D-1
  • Medium-sized business: means a corporation, partnership, sole proprietorship, or other legal entity that:

    (1) Is domiciled in this State;

    (2) Is formed to make a profit; and

    (3) Employs one hundred or more but fewer than five hundred full-time employees. See Hawaii Revised Statutes 211D-1

  • Nonprofit organization: means a private, nonprofit, tax-exempt corporation, association, or organization listed in section 501(c)(3), Internal Revenue Code of 1986, as amended, that is domiciled in this State. See Hawaii Revised Statutes 211D-1
  • Participating financial institution: means a financial institution participating in the program. See Hawaii Revised Statutes 211D-1
  • Program: means the capital access program. See Hawaii Revised Statutes 211D-1
  • Reserve account: means an account established in a participating financial institution on approval of the department in which money is deposited to serve as a source of additional revenue to reimburse the financial institution for losses on loans enrolled in the program. See Hawaii Revised Statutes 211D-1
(b) The department shall use money in the fund to make a deposit in a participating financial institution‘s reserve account in an amount specified by this chapter to be a source of money the institution may receive as reimbursement for losses attributable to loans in the program.
(c) The department shall determine the eligibility of a financial institution to participate in the program and may set a limit on the number of eligible financial institutions that may participate in the program.
(d) To participate in the program, an eligible financial institution shall enter into a participation agreement with the department that sets out the terms and conditions under which the department will make contributions to the institution’s reserve account and specifies the criteria for a loan to qualify as a capital access loan.
(e) To qualify as a capital access loan, a loan shall:

(1) Be made to a small or medium-sized business or to a nonprofit organization;
(2) Be used by the business or nonprofit organization for any project, activity, or enterprise in Hawaii that fosters economic development; and
(3) Meet any other criteria provided by this chapter.
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