Community Facilities Loan Program
Community Facilities Loan Program
A. PURPOSE OF THE PROGRAMThe purpose of the Community Facilities Loan Program is to improve, develop or finance essential community facilities for non-profit organizations in rural Hawaii.
To accomplish this purpose, the program provides direct loans and loans that are guaranteed by the USDA/Rural Development Agency at a reasonable cost and seeks to coordinate and leverage its resources with those of other government agencies and private sources.
B. ELIGIBLE ACTIVITIES- Program funds may be used to construct, enlarge, extend, or otherwise improve other essential community facilities providing essential service primarily to rural residents and businesses.
- Essential community facilities include, but are not limited to fire, rescue, public safety, health services, and community, social, or cultural services;
- Transportation facilities, telecommunication equipment, and recreational facilities. Also, the purchase of major equipment such as telecommunication equipments, X-ray machines, which will in themselves provide essential service to rural residents;
- Funds may also be used to pay certain expenses, but only when such expenses are a necessary part of a loan to finance facilities authorized as an eligible loan purpose.
Requirements are that an applicant:
- Shall be a public body such as a municipality, county, or other political subdivision of the State of Hawaii located in a rural area; or
- An organization operated on a not-for-profit basis such as an association, cooperative, or a private corporation;
- The primary place of business must be located in a rural area, meaning a city, town or unincorporated area that has a population of 50,000 residents or less.
- A reasonable assurance of loan repayment;
- A lack of available credit from private, commercial, or cooperative sources at reasonable rates and terms for loans for similar purposes and period of time;
- A sufficient amount of collateral to secure the loan;
- Credit quality and financial feasibility analysis for determining the economic feasibility of the proposed plan.
Current loan limits are:
- $50,000 - minimum
- $200,000 - maximum
- Interest rate and lender fees will not exceed those charged other borrowers for similar types of transactions. Term length will be limited to the useful life of the facility, not to exceed 40 years.
Every effort is made to meet the needs of the borrower; therefore, specific loan terms are flexible.
Please contact our office at (808) 242-5761 and ask to speak with our Loan Officer. You can also email us at for further assistance.
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