KAPA‘A — The U.S. Small Business Administration partnered with the Hawai‘i Small Business Development Center to open an SBA Disaster Assistance and Business Recovery Center on Monday in the former Otsuka’s Furniture building on Kuhio Highway in Kapa‘a.
“There are a lot of people, including people who have businesses, impacted by the Maui fires (who) moved to Kaua‘i to stay with relatives,” said May Jean Melchor of the SBA office. “By opening this Kapa‘a office, they can take care of relief without having to fly back and forth to Maui.”
The opening of the SBA office celebrates the first tenant since the building was acquired by the Kaua‘i Federal Credit Union. The opening was also part of the recently-expanded declaration by the Biden administration to allow small businesses in all five of Hawai‘i’s counties to access wildfire-related disaster assistance.
“Due to the severe property damage in Maui, and economic losses the Maui wildfires inflicted on small businesses in all of Hawai‘i, we want to provide every available service to help get them back on their feet,” said Jeffrey Lucks, director of the U.S. Small Business Administration’s Disaster Field Operations Center-West.
“The center will provide a one-stop location for businesses to access a variety of specialized help. SBA customer service representatives will be available to meet individually with each small business owner to explain how an SBA disaster loan can help finance their recovery.”
No appointments are necessary, and all services are free during the office’s operating hours from 9 a.m. to 6 p.m. on Monday through Saturday at 1424 Kuhio Highway.
SBA representatives will meet with each business owner to explain how an SBA disaster loan can help finance their recovery. They will also answer questions about the SBA disaster loan program, explain the application process, and help each business owner complete their electronic loan application.
The opening of the Kaua‘i County office in Kapa‘a joins other SBA Business Recovery Center offices located in Honolulu County, and two sites on Maui.
In addition to business owners, homeowners and renters from Maui, who have been displaced by the Maui wildfires and small business in the state of Hawai‘i that have working capital needs caused by the Maui fires, may also visit the centers to meet with SBA representatives and apply for disaster loans.
According to interim state
Director Joseph Burns of the Hawai‘i Small Business Development Center, business advisors can provide business assistance to clients on a wide variety of matter designed to help small business owners reestablish their operations, overcome the effects of the disaster and plan for their future.
“Services include assessing business working capital needs, evaluating the business’s strength, cash flow projections, and most importantly, a review of options with the business owner to help them evaluate their alternatives and make decisions that are appropriate for their situation,” Burns said.
For small businesses, small agricultural cooperatives, small business engaged in aquaculture, and most private, nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any property damage.
Interest rates are 4 percent for businesses, and 2.375 percent for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition. Interest does not accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment starts 12 months from the date of the first disbursement.
The deadline to apply for property damage is Oct. 10, 2023. The deadline to apply for economic injury is May 10, 2024.
Applicants may apply online, receive additional disaster assistance information, and download application forms at www.sba.gov/hawaii-wildfires. Applicants may also call SBA Customer Service Center at 808-659-2955, or email disastercustomerservice@sba.gov.
