(a) The amount deposited by the department into a participating financial institution‘s reserve account for any single loan recipient may not exceed $100,000 during a three-year period.

Terms Used In Hawaii Revised Statutes 211D-7

  • 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
  • Loan: includes a line of credit. 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
  • 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 maximum amount the department may deposit into a reserve account for each capital access loan made under this chapter is the lesser of $35,000 or an amount equal to:

(1) Eight per cent of the loan amount if:

(A) The borrower is an eligible enterprise zone business located in an area designated as an enterprise zone under chapter 209E; or
(B) The borrower is a small or medium-size business or a nonprofit organization that operates or proposes to operate a child care facility or adult residential care home; or
(2) Six per cent of the loan amount for any other borrower.
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