HAR §15-2-4. Types of loans; policy on direct and participation loans

(a) The department may make two types of loans: (1) Direct loans; and (2) Participation loans made in conjunction with loans made by other financial institutions, including the SBA. (b) Direct loans may be made by the department when a participation loan is not available to the applicant. (c) Participation loans may be made if the applicant is unable to obtain the entire loan from a financial institution, the SBA, or others. (d) The department's policy shall be to stimulate and encourage participation by financial institutions including the SBS. A direct loan may be made when an applicant provides evidence satisfactory to the director that a participation loan is not available. [Eff. 7/6/81; am and comp DEC 21 1989] (Auth: HRS §210-4, §210-5) (Imp: HRS §210-6)