Business Loans Hawaii – Detailed Manual for You

Business Loans Hawaii - Efficient Detailed Guide 2022

As you develop your business in the state of Hawaii, you need a business loan that matches your objectives. Business loans Hawaii National Bank provide flexibility, helping you make long-term payments with an affordable monthly payment plan that’s right for business accounts.

Business Term Loan

For business needs, such as improving an office or building, buying hardware, or growing a business.

Features

  • Can be granted on an uncollateralized or collateralized basis.
  • Flexible repayment terms.

Lines of Credit

Get money when you need it for payroll, to supplement working capital, to settle accounts payable, or to purchase inventory.

Business Loans Hawaii - Efficient Detailed Guide 2022

Two options are available: the Prime Plus Business Access line of credit and the Prime Plus Business Equity line of credit.

PRIME PLUS BUSINESS ACCESS CREDIT LINE

This revolving business line of credit is available through special checks. It also provides protection against overdraft by tying it to your operating online banking account, offering easy access to cash to meet business requirements – for funding working capital, trade discounts, financing accounts receivable, or running short-term cash needs.

  • Highest credit limit: $250,000. The credit provision is replenished as funds are repaid.
  • Original opening fee and yearly renewal fee are based on the line of credit being requested.
  • Your monthly statement will show your line of credit activity, which includes the sum of accrued interest and the minimum fee payable
  • Minimal monthly payment: 2% of the balance outstanding plus interest or $100 including interest, whichever is higher.
  • No prepayment charge
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PRIME PLUS BUSINESS EQUITY LINE OF CREDIT

This term loan or line of credit is based on a commercial real estate second mortgage and improvements and can be used for working capital.

Special Loans & Lines

Our customized programs are perfect for buying extra equipment, modernizing an office, or refinancing an old loan.

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These programs are designed specifically to help Hawaii business professionals such as grocery retailers, healthcare professionals, and registered public accountants.

Other features:

  • More than $100 in savings, including free checks, free VISA membership, and free online banking with cash management for three months.
  • Flexible terms and conditions for borrowing and repayment of credit lines

Small Business Administration

The SBA is a federal government agency that provides financial aid to businesses that need a longer repayment period. SBA loans are used to fund the construction or modernization of facilities, buy equipment and machinery, or add permanent working capital. Loans can also be used to help refinance existing debt. The SBA guarantees as much as 85% financing.

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Types of loans of interest include:

  • SBA 7(a): Prime program for loans up to $5,000,000. Repayment terms of up to 10 years for operating capital loans. Options include discounts for companies owned by veterans.
  • SBA PLP: Hawaii National Bank is an SBA 7(a) PLP (Preferred Lenders Program) appointed lender. Under PLP status, Hawaii National Bank receives full lending privileges. Not all banks in Hawaii have PLP registration.
  • SBA 7(a) CAPLine: A targeted loan program created to help small businesses solve their short-term recurring working capital needs – Contract CAPLine program, Seasonal CAPLine program, Builder’s CAPLine program, or Working Capital CAPLine program.
  • SBA Express: A program that promotes loans or lines of credit for small businesses up to $350,000. The SBA secures up to 50% of the loan amount. Repayment terms are typically 5-7 years for term credits. Discounts are given for a veteran-owned business.
  • SBA Loan Advantage: Small business loan promotion program for up to $250,000. SBA has up to an 85% guarantee on loans up to $150,000 and a 75% guarantee on loans ranging from $150,001 to $250,000.
  • SBA 504: Focused program to provide very specific long-term financing for the purchase of capital assets (owner-occupied business property, heavy equipment/equipment, or merchant ships). Repayment terms range from 10 to 25 years based on the anticipated useful life of the capital asset.
  • SBA Export Express Loan Program: Offers pre- and non-export working capital funding for international export sales. SBA guarantees 90% on loans up to $350,000 and 75% on loans from $350,001 to $500,000.
  • SBA International Trade and Export Working Capital Program: Program for businesses engaged in international commerce or exports for up to $5,000,000 in loans with an SBA up to 90% guarantee.
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FAQ

How do I qualify for a business loan?

If you want to start a business in Hawaii, you must obtain one or more state licenses or permits. However, unlike other U.S. states, Hawaii does not have a mandatory business license for all businesses. Some businesses may require state permits. For example, there are businesses that may need a permit related to occupational safety and health, which can only be issued by the Department of Health. In addition, some licenses need to be issued locally. Meanwhile, the requirements vary greatly from city to city or country to country. In addition to obtaining the necessary licenses or permits, the government requires some legal forms of business, such as corporations and limited liability companies (LLCs), to keep records.

Can you get a business loan with 10% down?

Providing a down payment on a business loan gives the creditor peace of mind. Simply put, the more you can put down, the better. Putting more money down in advance not only reduces the amount you have to pay back over time, but it usually leads to lower rates and fees from your lender. If you asked a bank if you could buy a business property without a down payment, they would have either politely rejected your application or offered you a loan with a tremendous interest rate.

How do I get a downpayment for a small business loan?

Down payments on business loans differ depending on the type of loan, purpose and borrower type profile. For example, you may have to make a 10% down payment for a commercial loan through the Business Administration, but not a down payment for a commercial car loan. Down payments on a commercial business loan can greatly increase upfront costs, based on the type of loan. To help you assess the options available for your business, we’ve created a list of business loans and mandatory down payment terms.

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What businesses are not eligible for SBA loans?

SBA loan requirements range depending on the lender and the specific loan program. In general, however, you need to qualify for some basic U.S. Small Business Administration eligibility criteria, such as working in a qualifying business, as well as having a strong credit history and good credit scores, to qualify for these business loans.

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