Business Monday: Recovery Center to help small businesses affected by downtown Hilo fire

Rebekah Macquarrie’s business, Avani Yoga and Boutique, went up in flames on Nov. 30, when a raging fire destroyed the entire building at 189 Kinoʻole Street in downtown Hilo.

She lost her business space and all her merchandise.

But she and other businesses located in the two buildings that burned can get help from the U.S. Small Business Administration, which also is assisting businesses, private nonprofit organizations, and residents affected by the Kona low storms in March.

Beginning Tuesday, April 21, customer service representatives with the Small Business Administration will be available at the Business Recovery Center in Hilo to answer questions and assist with the disaster loan application process.

For people affected by the Kona low storms, they can apply for Physical Damage Loans or Economic Injury Disaster Loans through the Small Business Administration.

“Anyone who has a home that was affected within a declared disaster area can apply for the physical damage loans, whether they are renters or homeowners,” said Natalie Butz, public affairs specialist with the Small Business Administration. “These loans cover the losses that are not covered by insurance or other sources.”

Homeowners may apply for up to $500,000 to replace or repair their primary residence. Renters and homeowners may borrow up to $100,000 to replace or repair personal property — such as clothing, furniture, cars, and appliances — damaged or destroyed in a disaster.

“We recommend people consider a Small Business Administration Loan because people are under no obligation to accept the funds if they are approved,” Butz said.

The loans have much lower interest rates, with businesses as low as 4 percent, nonprofits as low as 3.624 percent and homeowners as low as 2.875 percent.

“Payments are also manageable, so people can get back into their homes or back in business,” Butz said.

Entities affected by the Hilo fires can only apply for the Small Business Administration’s Economic Injury Disaster Loan program, which is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations — including faith-based organizations — with financial losses directly related to the disaster.

The Small Business Administration is unable to provide disaster loans to agricultural producers, farmers or ranchers, except for small aquaculture enterprises.

Economic Injury Disaster Loans are available for working capital needs caused by the disaster and are available even if the business or private nonprofit organization. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.

“Honestly, a loan cannot fix everything I lost, especially the memories from old photos and the feeling of safety and security, but this may help me get back on my feet,” Macquarrie said. “I lost my space that I occupied for several years and every piece of merchandise. This might help me start over.”

There are four ways to apply for both Small Business Administration loans.

• Apply online at sba.gov/disaster 
• Call the toll free number at 1-800-659-2955
• Email at disastercustomerservice@sba.gov
• Applying in person at any of the Business Recovery Centers 

“I recommend going in person because you don’t need an appointment, and you work directly with one representative throughout the process,” Butz said.

The Business Recovery Center will be located in the conference room at the Hawaiʻi County Office of Aging, at 1055 Kinoʻole St. Ste. 101, and will be open from 8 a.m. to 4 p.m. Monday through Friday beginning on April 21.

Each applicant will need to provide the last two years of tax returns and their credit history to show the case manager their ability to repay loans. Proof also is needed to show actual loss through photos or a walk-through.

The Small Business Administration determines eligibility and sets loan amounts and terms based on each applicant’s financial condition.

For businesses or private nonprofits affected by the downtown Hilo fire, the deadline for the Economic Injury Loans is Jan. 4, 2027.

For those affected by the Kona low storms, the Physical Damage Loan application is due by June 10, 2026 and the Economic Injury Loan application is due by Jan. 7, 2027.

“It normally takes longer to provide proof of economic injury, so they are typically due six months after the disaster declaration,” Butz said. “We will be here to help until that time.”

For more information on eligibility and the application process, visit the Small Business Administration website.