HAR §15-120-9. Loan eligibility requirements

To 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 ofincome from the business; 120-6 § 15-120-8 (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) Ifrequired 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 depruiment on a case-by-case basis; (7) Demonstrate that the purpose ofthe loan is in conformity with provisions ofthis 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 ofthe applicant; (C) Through the disposal at fair price ofassets not required by the applicant in the conduct ofits existing business or not reasonably necessary to its potential healthy growth; (D) Without undue hardship through utilization ofthe personal credit or resources ofthe owner, partners, management, or principal shareholders ofthe applicant; or (E) Through other appropriate government financing. [Eff MAY 1]5(!Qil8: HRS §210D-8) (Imp: HRS §210D­ 8)