Loans may be made to individuals, partnerships, corporations, cooperatives, or other business associations, but only if the applicant:

(1) Suffered loss of or damage to property in a rehabilitation area as a result of a state disaster;

Terms Used In Hawaii Revised Statutes 209-29

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Director: means the director of business, economic development, and tourism. See Hawaii Revised Statutes 209-1
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Rehabilitation area: means any area of the State struck by a state disaster and declared to be in need of rehabilitation by the governor pursuant to section 209-2. See Hawaii Revised Statutes 209-1
  • Small Business Administration: means the Small Business Administration of the United States. See Hawaii Revised Statutes 209-1
  • State disaster: means any unfortunate, sudden, and extraordinary occurrence declared by the governor pursuant to section 209-2 to have caused losses and suffering of such character and magnitude as to require and justify rehabilitative assistance from the State. See Hawaii Revised Statutes 209-1
(2) For a commercial loan, had operated an industrial, manufacturing, processing, wholesaling, or retailing business, or professional or service business, or building rental business, immediately before the disaster;
(3) Presents a suitable program for:

(A) Rehabilitation or reestablishment of the applicant’s business to its predisaster level when applying for a commercial loan; or
(B) Meeting necessary expenses and satisfying the serious needs of the applicant and the applicant’s family including reciprocal beneficiary when applying for a personal loan;
(4) Has reasonable ability to repay the loan; and
(5) For a commercial loan, presents written evidence that the Small Business Administration had declined an application for financial assistance under the Small Business Administration Disaster Loan Program or has reduced the amount of the loan request; provided that the declination was not due to the applicant’s having sufficient financial resources to rehabilitate the applicant; or
(6) For a commercial loan, cannot secure any loans from the Small Business Administration Disaster Loan Program because the making of the loans is not covered by the program, and the director of business, economic development, and tourism is reasonably satisfied that the applicant is not able to secure loans from private lending institutions and does not have sufficient financial resources to rehabilitate the applicant.

Paragraph (6) shall be applied in the alternative with respect to paragraph (5) of this section.

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