[§211D-3] Capital access program.

229 words·~1 min read·/hi/211d-3

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)The department shall establish a capital access program to assist a participating financial institution in making loans to businesses and nonprofit organizations that face barriers in accessing capital.

(b)The department shall use money in the fund to make a deposit in a participating financial institution's reserve account in an amount specified by this chapter to be a source of money the institution may receive as reimbursement for losses attributable to loans in the program.

(c)The department shall determine the eligibility of a financial institution to participate in the program and may set a limit on the number of eligible financial institutions that may participate in the program.

(d)To participate in the program, an eligible financial institution shall enter into a participation agreement with the department that sets out the terms and conditions under which the department will make contributions to the institution's reserve account and specifies the criteria for a loan to qualify as a capital access loan.

(e)To qualify as a capital access loan, a loan shall:

(1)Be made to a small or medium-sized business or to a nonprofit organization;

(2)Be used by the business or nonprofit organization for any project, activity, or enterprise in Hawaii that fosters economic development; and

(3)Meet any other criteria provided by this chapter. [L 2000, c 290, pt of §2]