Microloan program gets under way at OHA

By Vicki Viotti
Advertiser Staff Writer

The Office of Hawaiian Affairs today will begin trying out a new microloan program for Native Hawaiians, offering money to ease temporary cash-flow problems and underwrite career-advancement opportunities.

OHA trustees in November approved the Consumer Revolving Micro-Loan Pilot Program, and OHA will run the program for a trial period extending through June and then decide whether to extend it. A total of $500,000 has been allotted for the loans.

The maximum amount for the loans is $7,500, issued at a 5 percent fixed interest rate over a five-year term. Monthly payments would be no more than $141.

Applicants will be screened based on their ability to repay the loan and a satisfactory credit rating.

OHA officials have emphasized that these are not low-income loans.

The agency has set a goal of disbursing loans within one week, said loan officer Gilbert Fernandez, because the loans are geared to cover financial emergencies or instructional courses.

Loan applicants may prove their Hawaiian ancestry through birth certificates or other documents, as well as through the OHA registry program. Questions are being fielded by Gilbert Fernandes at 594-1829.

Reach Vicki Viotti at 525-8053 or vviotti@honoluluadvertiser.com.

Correction: Incorrect information about the program's trial period and application process was included in a previous version of this story.