HI-CAP CDFI Loan Program
What is HI-CAP CDFI Loan Program?
The HI-CAP CDFI Loan Program is designed to provide non-depository Community Development Financial Institutions (CDFI) with low-cost loan capital to re-lend to eligible small businesses in Hawaii.
How much HI-CAP CDFI Loan funds are currently available to support loans to non-depository CDFIs for re-lending purposes?
Who is eligible?
Non-depository CDFIs lending to small businesses in Hawaii.
What business purposes are eligible for loans made by CDFIs with SSBCI loan capital?
Eligible business purposes include, but are not limited to, start-up costs; working capital; franchise fees; and acquisition of equipment, inventory, or services used in the production, manufacturing, or delivery of a business’s goods and services, or in the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes.
What business purposes are ineligible for loans made by CDFIs with SSBCI loan capital?
Ineligible business purposes include, acquiring or holding passive investments in real estate, the purchase of securities, lobbying activities (as defined in Section 3(7) of the Lobbying Disclosure Act of 1995, P.L. 104-65 as amended), pyramid schemes, speculative activities, illegal products or activities, legal products used for illegal purposes, the purchase of securities, legal or illegal gambling, or evangelizing and proselytizing.1
How can I apply?
Non-depository CDFIs can apply by completing a HI-CAP CDFI Loan Program Application and submitting it and other supporting information to HGIA. Email [email protected] for questions.
How does the program work?
1. Interested CDFI submits a HI-CAP CDFI Loan Program Application to request approval of a line of credit with HGIA for re-lending purposes.
2. HGIA approves a credit facility to provide low-cost loan capital for the CDFI.
3. During its normal underwriting, the Participating CDFI determines if the applicant, loan purpose, and proposed loan structure meets SSBCI eligibility. If so, it discusses the HI-CAP CDFI Loan Program with its small business/nonprofit applicant (“Applicant”).
4. Applicant completes the Borrower Application and Certification.
5. Participating CDFI submits a Loan Enrollment Packet to HGIA for SSBCI eligibility review.
6. When approved, HGIA shall reserve funding to support the Loan for up to 60 days.
7. Upon Loan closing, Participating CDFI to submit executed Loan documents, Certificate and Agreement of Borrower, and other required program documents to HGIA.
8. HGIA will make an advance under the CDFI’s credit facility and deposit funds for up to 50% of loan amount to the Participating CDFI.
9. The Participating CDFI will fund the loan to its borrower.
1The Act defines “lobbying activities” as “lobbying contacts and effort in support of such contacts, including preparation and planning activities, research and other background work that is intended, at the time it is performed, for use in contacts, and coordination with the lobbying activities of others.”