Section 15-120-9 - Loan eligibility requirementsTo be eligible for a loan, the applicant shall:
(1) Be an organization engaged in or establishing community-based economic development activities or a community-based enterprise;(2) Not be able to obtain a loan from at least one private or other public financial institution;(3) Furnish information to show that the applicant has the ability to repay the loan out of income from the business;(4) Have applied for or received all applicable licenses and permits;(5) Satisfactorily demonstrate to the department that it can operate on a sound financial basis;(6) If required by the department, provide collateral to reasonably protect the State's interest. The amount of collateral needed, considered along with other factors, shall be determined by the department on a case-by-case basis;(7) Demonstrate that the purpose of the loan is in conformity with provisions of this chapter; and(8) Demonstrate that the loan amount is not obtainable:(A) Through other existing state loan programs;(B) Through the public offering or private placement of securities of the applicant;(C) Through the disposal at fair price of assets not required by the applicant in the conduct of its existing business or not reasonably necessary to its potential healthy growth;(D) Without undue hardship through utilization of the personal credit or resources of the owner, partners, management, or principal shareholders of the applicant; or(E) Through other appropriate government financing.[Eff MAY 15 2020] (Auth: HRS § 210D-8) (Imp: HRS § 210D-8)