Hawaiʻi Small Business Capital Program awarded $20 million

The Hawai‘i Technology Development Corp. and Hawaiʻi Green Infrastructure Authority, co-administrators of the State Small Business Credit Initiative, have announced receipt of an additional $20.5 million in federal funding to bolster the Hawaiʻi Small Business Capital Program, also known as HI-CAP.

The infusion of money from the US Treasury brings total federal support to $40.3 million. Established in the aftermath of the COVID-19 pandemic, the HI-CAP Program was designed with community input to address the unique challenges faced by Hawaiʻi’s small businesses.

The HI-CAP Program offers four tailored initiatives:

1.    HI-CAP Collateral: Collaborates with participating financial institutions to provide cash collateral to eligible small businesses, enhancing their ability to secure loans. 

2.    HI-CAP Loans: Lends to businesses undertaking transformative projects that have a significant community impact, including sectors like renewable energy, dual-use technology and innovation. 

3.    HI-CAP Community Development Financial Institutions Fund Loan Program: Provides capital to CDFIs, enabling them to offer various loan types to eligible small businesses.

4.    HI-CAP Invest: A fund-of-funds venture capital program designed to invest in high-quality investment managers who mentor and advise entrepreneurs, facilitating follow-on investments. 

Eligibility for the HI-CAP Program extends to Hawaiʻi-based small businesses with fewer than 500 employees, encompassing a diverse range of industries such as technology, renewable energy, manufacturing and agriculture.

By supporting these enterprises, HI-CAP not only fuels economic development, but also ensures that local tax dollars create meaningful impacts within our communities.

“This additional funding reinforces our dedication to empowering Hawaiʻi’s small businesses,” said Gwen Yamamoto Lau, authority executive director. “By providing access to capital, we are fostering innovation, creating jobs and strengthening the economic fabric of our state.”

For more information about the HI-CAP Program and its offerings, visit the corporation’s website here, and the authority’s website here.

The Hawai‘i Technology Development Corp. is a state agency attached to the Department of Business, Economic Development and Tourism, or DBEDT, focused on promoting and developing Hawai‘i’s technology industry. With a mission to facilitate the growth of technology and innovation, the corporation plays a key role in connecting talent with opportunities in the state.

The state of Hawai‘i’s HI-CAP program provides capital assistance to Hawai‘i’s businesses, start-ups and entrepreneurs. It is funded by the US Treasury for the State Small Business Credit Initiative, a part of the American Rescue Plan Act of 2021.

For more information, visit htdc.org.

The Hawaiʻi Green Infrastructure Authority, administratively attached to DBEDT, is a state agency committed to democratizing clean energy by making investments accessible and affordable for Hawai‘i’s underserved ratepayers, while stimulating private investments and leveraging innovative financing tools. The authority also provides credit enhancements and non-traditional HI C-PACER financing to expand access to capital for small businesses, nonprofits and commercial property owners statewide. The agency supports Hawai‘i’s goal of achieving 100% clean energy in the electricity sector by 2045.