Business Loans & SBA Loans in Hawaii

Hawaii’s relaxing, tropical vibes attract many entrepreneurs to the Aloha State, and there are many business loans that can help you set up shop to profit in paradise.


Types of Hawaii Business Loans

While the cost of living in Hawaii can be high, the state is thriving due to a booming tourist industry, as well as a strong local economy. If you want to open a business in Hawaii, you can choose from a wide variety of small business loans to fit your needs. These business loans were built to help you attain your entrepreneurial goals.

SBA Loans

A popular program from the Small Business Administration, SBA loans are partly guaranteed by the federal government and serviced through private lenders. They are popular because they—especially the flagship SBA 7(a) loan—often carry lower interest rates.

Line of Credit

A business line of credit provides a company with credit that can be used for business purchases. The business then pays back the balance that they’ve utilized.

Term Loan

Term loans are what many people think of when they hear “small business loan”—a lender disburses a lump sum to a business, which then repays the loan every month, along with interest and fees.

Equipment Finance

With equipment financing, a lender gives you a loan to buy a piece of equipment you need, and you repay the cost of the loan in monthly installments.

Accounts Receivable Financing

If you have a mountain of unpaid invoices, you should look into accounts receivable financing. With this type of lending, you receive a loan based on the value of the unpaid invoices you are owed by your customers.

Hawaii Business Loan Options

Several organizations service loans to small businesses that set up shop in Hawaii.

Hawaii Venture Capital Association is perfect for venture capital and small business owners in Hawaii.

Hawaii Angels is a group of island-based angel investors that is perfect for early-stage businesses.

Several Hawaii-based banks have great commercial lending options, like Bank of Hawaii.

If you prefer credit unions, the Hawaii State Federal Credit Union (HSFCU) has a team dedicated to small business loans.

If you’re looking for a bank offering SBA loans, consider First Hawaiian Bank as an option.

American Savings Bank offers multiple loan options to Hawaii small businesses, including business term loans and SBA loans.

The Office of Hawaiian Affairs (OHA) helps all people of native Hawaiian ancestry get business loans through its Mālama Loan Program.

HawaiiUSA Federal Credit Union offers commercial loans and lines of credit to small businesses in the state.

Hawaii National Bank offers several loan products to small businesses in the state, including term loans, lines of credit, SBA loans, and more.

How to apply for a small business loan

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

See which credit cards you qualify for before choosing the one that best suits your business needs and offers the cash rewards you’re looking for.

STEP
3
Get funded.

Once you choose a card, you can get approved in as little as 7-10 days.

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FAQ about Small Business Loans in Hawaii

The state government’s Department of Commerce and Consumer Affairs is a wealth of resources for businesses, and the agency will assist from startup to the late stages of your company’s development. Another state agency, the Department of Business, Economic Development & Tourism (DBEDT), is a resource center for all types of entrepreneurs, but especially those in the tourism and foreign trade industries. SCORE has a presence in Hawaii, providing education, mentorship, and networking opportunities for local small business owners.

  

If you are located in Hawaii and seeking a small grant, you should definitely apply for HSFCU’s small business grant program. The state has partnered with the federal government to offer several grants for Hawaiian small businesses, particularly those working in import/export, high tech, or applied research. USGrants.org keeps a running list of pertinent grants for Hawaiian entrepreneurs—if your business is in the childcare, healthcare, or environmental services industries, you should regularly check the list.

 

After you’ve decided on a structure for your business (like an S-Corp or LLC), check with the state government to see if you have to register your business. Depending on your industry and location, you might also have to apply for certain permits and licenses. You can now apply for business loans. Search Lendio’s platform for free to see what is available to you. Financiers will likely consider your business plan, your business’s history, and your credit score in making approval decisions.

Deciding on the right loan for your Hawaiian business will depend on how much money your business needs and your forecasted ability to pay it down over time. In general, you should consider how a business loan will help you earn more profits in the long run.

A business loan can help you grow your reach with visitors to Hawaii, as well as locals—for example, to upgrade your facilities to handle next year’s stampede of tourists to to pay for advertising.

An SBA preferred lender is a lender that’s been approved by the Small Business Administration to administer SBA loans without additional approvals from the SBA. Typically these lenders have years of experience and can approve SBA loans faster than non-preferred lenders.

SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.

Quickly compare financing options from multiple funders.

Applying is free and won’t impact your credit

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