HI-CAP Collateral

What is HI-CAP Collateral?

HI-CAP Collateral is a credit enhancement program, designed to assist eligible small businesses and nonprofit organizations in obtaining financing by providing cash collateral to Participating Lenders to enhance the collateral coverage of its borrowers. Upon identifying a collateral shortfall, the Participating Lender will submit a HI-CAP Collateral Loan Enrollment request to HGIA for approval and processing.

How much HI-CAP Collateral funds are currently available to support loans?

$1,098,327

Who is eligible?

Most for-profit corporations, sole proprietorships, limited liability companies, partnerships, nonprofits, and cooperatives.

What business purposes are eligible?

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. SSBCI funds may be used to purchase any tangible or intangible assets except goodwill.

What business purposes are ineligible?

Ineligible business purposes include, acquiring or holding passive investments in real estate (with exceptions below), 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 does the program work?

1. Interested Financial Institution submits an application to become a Participating Lender with HGIA and execute required documents.

2. During its normal underwriting, if a Participating Lender identifies a collateral gap, it discusses the HI-CAP Collateral Program with its small business/nonprofit applicant (“Applicant”).

3. Applicant completes the Borrower Application and Certification.

4. Participating Lender submits a Loan Enrollment Packet to HGIA for SSBCI eligibility review.

5. When approved, HGIA shall reserve funding to support the Loan for up to 60 days.

6. Upon Loan closing, Participating Lender to submit executed Loan documents, Cash Collateral Deposit Agreement, Certificate and Agreement of Borrower and other required documents to HGIA.

7. HGIA will deposit the funds in the Collateral Deposit Account to support the Participating Lender’s Loan.

How can I apply?

Borrowers need to apply through a Participating Lender:

  • Central Pacific Bank

We are in the process of enrolling more financial institutions to participate in this program and will be updating the list on an on-going basis. Please email [email protected] to be notified when additional lenders are added to the program. As soon as we update this page with a list of Participating Lenders, we will let you know and you will be able to inquire with a Participating Lender at that time.


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.”