Government Guaranteed Loans
As a designated lender for the U.S. Small Business Administration's (SBA) Preferred Lenders Program (PLP) and a preferred loan provider for the U.S. Department of Agriculture (USDA), we are among a select number of lenders who have the authority to streamline and expedite your financial assistance.
Small Business Administration
The SBA is a federal agency providing financial assistance to small businesses requiring longer repayment terms. SBA loans are used to finance the construction or modernization of facilities, purchase machinery or equipment, or increase permanent working capital. If eligible under SBA guidelines, the loans can also be used to refinance existing debt. The SBA guarantees up to 85% of the financing.
Types of SBA loans include:
- SBA 7(a): The basic program for loans up to $5,000,000. Maturities of up to 10 years for working capital loans.
- SBA PLP: Hawaii National Bank is an authorized SBA 7(a) PLP (Preferred Lenders Program) Lender. Under the PLP designation, Hawaii National Bank enjoys the full delegation of lending authority. Not every bank in Hawaii has the PLP designation
- SBA 7(a) CAPLine: A specialized loan program designed to assist small businesses with meeting their short-term cyclical working capital needs.
- Contract CAPLine Program: Used to finance all contract costs, excluding profit. May be on revolving or non-revolving terms.
- Seasonal CAPLine Program: Used to finance the short-term seasonal increases in accounts receivable and inventory.
- Builder's CAPLine Program: Provides financing for small general contractors involved in residential or commercial construction or building rehabilitation for resale.
- Working Capital CAPLine Program: Provides financing for short-term working capital needs (to purchase inventory, pay direct labor or finance accounts receivables) and is advanced against existing inventory and accounts receivables.
- SBA Express: A program to facilitate small business loans or lines of credit up to $350,000. SBA guarantees up to 50% of the loan amount. Maturities are usually 5-7 years for term loans.
- SBA Loan Advantage: A program to facilitate small business loans up to $250,000. SBA guarantees up to 85% for loans up to $150,000 and 75% for loans between $150,001 and $250,000.
- SBA 504: A specialized program to provide long-term financing for the acquisition of fixed assets (owner-occupied commercial property, heavy machinery/equipment, or commercial boats). Maturities range from 10-20 years based on the expected economic life of the fixed asset.
- SBA Export Express Loan Program: Provides pre- and post-export working capital financing for export sales. SBA guarantees 90% for loans up to $350,000 and 75% for loans between $350,001 and $500,000.
- SBA Patriot Express Program: Designed for businesses owned by veterans; service-disabled veterans; active-duty personnel (potential retiree within 24 months of separation and discharging active-duty member within 12 months of discharge); reservists and National Guard service members; or current spouse or widow. SBA guarantees 85% for loans up to $150,000 and 75% for loans between $150,001 and $500,000. Term loans and revolving lines of credit are available.
U.S. Department of Agriculture (USDA)
USDA loans are made to businesses located in specific rural areas on Oahu and to businesses on the neighbor islands. These loans include:
- USDA Business & Industrial Guaranty Loan Program: This program is designed to provide loans to businesses located in rural areas (as defined by the USDA). USDA guarantees up to 80% of loans of $5 million or less; 70% of loans of $5 million to $10 million; or 60% of loans of $10 million to $25 million. Loan maturities are usually 7 years for working capital, 15 years for machinery and equipment, and 30 years for land, building and permanent fixtures.
- USDA Community Facilities Guaranty Loan Program: This program is designed to provide loans to a municipality, special-purpose district, or nonprofit corporation for the development of public safety facilities (i.e. police station), public healthcare facilities (i.e. hospitals), or public service facilities (i.e. schools).
- USDA Farm Service Agency: This program is designed to assist family farm owners and ranchers who do not qualify for standard commercial loans or when credit is not available without a guarantee. It provides credit at reasonable terms to finance current operations or to expand business. USDA-FSA will guaranty 90% of loans up to $1,302,000.
State of Hawaii Agricultural Loan Program
This program promotes the agricultural development of the state by making more credit available to qualified farmers, partnerships, corporations and agricultural cooperatives. The State Department of Agriculture operates a revolving fund that can be used to supplement private and federal funds or, when necessary, make direct or guaranteed loans.