SBA Shatters State Lending Records in FY ’15 

Jane Sawyer, Honolulu District Director of the U.S. Small Business Administration. Courtesy photo.

The US Small Business Administration’s Hawai‘i District Office has reported a stunning 57% increase in the number of loans to small firms in Hawai‘i, Guam and American Samoa for Fiscal Year 2015 compared to 2014. The dollar volume also increased to $82.7 million in the most recent annual performance period.

In the 12 months ending Sept. 30, 2015, SBA provided loans to 779 small businesses in Hawai‘i for equipment purchase, expansion, inventory, working capital and other eligible business purposes—up from 495 last year. Twenty-eight lenders participated in the federal agency’s financing programs to meet the diverse needs of small business owners and entrepreneurs in the islands this year.

“SBA’s participating lenders launched the year at a very aggressive pace in 2015, taking advantage of SBA’s fee waiver on loans under $150,000 and many never slowed,” said District Director Jane Sawyer. “Two lenders, HawaiiUSA Federal Credit Union and Central Pacific Bank, each delivered over 200 loans, a feat that no lender has achieved in our district before this year. We are very excited about this level of activity and extend our thanks to our lenders.”

Each fiscal year, SBA recognizes the top lenders in three size categories based on the financial assets of the banks, savings and loans, and credit unions. SBA honored the top-performing lending institutions and the lending officers who contributed to the outstanding annual results, provided much-needed support to veterans and helped connect exporters with financing as they enter new markets.

Presented at the annual SBA Lender Awards in Honolulu, the agency honors included:

The SBA Lender of the Year Award is based on the number of 7(a) loans with bonus points for special support of agency initiatives such as financing for veterans and small business that export products or services.

Top producer and “Lender of the Year” Award for small financial institutions in Category 3, HawaiiUSA Federal Credit Union lead the field with 218 loans for a total volume of $6.98 million.

The “Lender of the Year” Award for mid-size Category 2 lenders in 2015 was Central Pacific Bank with 203 approvals for $9.8 million, besting their previous performance as well.

For FY 2015, Bank of Hawai‘i, the large financial institutions with assets in excess of $9 billion, was named the “Lender of the Year” for Category 1, The bank approved 41 loans for $ 5.6 million throughout the district.

The 504 Loan program is an economic development tool that works with approved third parties to partner with local banks and SBA to support business growth and job creation. These loans provide affordable, long-term, fixed-rate financing to help expanding firms acquire land, buildings, machinery and equipment or for building, modernizing or renovating facilities.

HEDCO, a local certified development company with 30 years of experience, worked with lenders to provide 38 loans over $38 million for small business ventures.

First Hawaiian Bank was honored as the most active participant in the program in 2015, making a total of 16 loans for $16 million. They were honored along with Central Pacific Bank in Category 2 with six 504 loans for $6 million and Hawai‘i National in Category 3 with two loans for $2 million.

American Savings Bank was also honored at the annual awards breakfast with a “Holomua Award” for their support for SBA’s programs, including new innovations to connect to prospective borrowers and support the growth of small business ownership and success. American Savings Bank produced 149 SBA loans for $6.1 million in 2015.

With the variety of loan programs available through SBA, small businesses have more options to consider for financing a start-up, an expansion, explore a new market or develop new products.

For more information about the financing tools and eligibility, contact the US Small Business Administration at (808) 541-2990 or go to www.sba.gov for details.