Posted on: Wednesday, September 8, 2004

OHA loan requirement dropped

By Vicki Viotti
Advertiser Staff Writer

A roadblock that kept some from seeking business loans under an Office of Hawaiian Affairs program has been removed in an effort to move more of the funds into the Native Hawaiian community.

The OHA board of trustees has eliminated a requirement that applicants to the $20 million Native Hawaiian Revolving Loan Fund first be turned down by two other lending institutions.

The need to present two letters of denial discouraged many potential applicants, said OHA administrator Clyde Namu'o.

The board also hoped to underscore its new open-door policy by officially redefining the fund as "lender of first choice," another provision of a motion approved last week.

The revolving loan fund had been previously designated as a "lender of last resort" in an effort to help the neediest Hawaiians who otherwise might not qualify for business financing, Namu'o said.

The action was taken after a consultation with Quanah Crossland Stamps, commissioner of the federal Administration for Native Americans, which is the agency that contributed about $10 million in grants toward the fund. Stamps was in town last week to attend the Native Hawaiian Conference, sponsored by the Council for Native Hawaiian Advancement.

A year ago, ANA discontinued its annual $1 million grant toward the fund because of a high default rate. OHA officials worried that the state agency would have to return the grant money but learned last spring that the federal money could stay in the fund.

The fund has provided 367 loans to business owners with Native Hawaiian ancestry.

For more information, call 594-1888.

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