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Small Business Loans in Hawaii (2021 Update)
Starting and running a business in Hawaii may not be as simple as it sounds if you do not have enough income. However, various financial lenders have made it easier to get capital to either run or start one. Getting small business loans from a bank is one of the challenges facing small business especially if they do not have a high credit score, although there are other available alternatives like SBA loans and line of credit financing.
What to do Before Getting a Loan
It is very attempting to use your loan for other activities if you do not have a plan. Therefore, you should weigh reasons why you want a loan before making an application. The kind of loan that you want helps you to determine the best lender. Comparing between different lenders available is the secret behind acquiring the best interest rates for your loan. Remember to gather all the documents needed by the lender before making application to avoid any challenges.
An entrepreneur can get an ideal lender once they are familiar with the type of small business loan that they want and the urgency of the income you want. Some of the big lenders in Hawaii include:
1 Conventional Banks
Banks are ideal for the small business owners who have collateral, high sales volume, and good credit. They also take the time to process and therefore not ideal for anyone working on a deadline. Banks may have lower interest rates, but they are not popular with the small-scale entrepreneurs due to their stringent regulations.
2 SBA Lenders
The government collaborates with banks, community workers, and micro-lending institutions to give loans to their citizens. It guarantees banks of the loan repayment thus allowing them to extend credit to borrowers. The guaranty covers around 75% to 90% of the loan depending on the credit score and employment status. However, the SBA takes a longer time to process their loans than the banks. They also have extra paperwork and charge an additional fee. The SBA loans are ideal for most start-ups and small-scale businesses. Use our new business loan calculator to estimate payments.
3 Alternative Lenders
They are the most common lenders with small scale entrepreneurs due to the few measures required to get a loan. The borrower can make the application online and receive approval after five days without providing information on their financial status or intended purpose of the loan. However, the interest charges are slightly higher than the banks and the SBA's.
Some of the most common loan lenders in the Hawaii include Territorial Savings bank, Hawaii National Bank, Pacific Rim Bank, Finance Factors Ltd, Central Pacific Bank, Bank of Hawaii and American Savings Bank, FSB.
Banks in Hawaii That Offer Small Business Loans
Below are the best banks for small business loans in Hawaii:
Ohana Pacific Bank
Headquartered in Honolulu, Ohana Pacific Bank can accommodate customers having either personal or business banking needs.
First Foundation Bank
Offering highly-comprehensive banking, trust, and finance management solutions, First Foundation Bank serves not only in Hawaii but also in California and Nevada.
Hawaii National Bank
Founded by a local with humble, immigrant roots, Hawaii National Bank broke the national record for first-day deposits at a new bank at $6.25 million. It has helped small businesses attain financial success for more than 50 years and is still owned and managed by the same family.
Central Pacific Bank
Organized by a small group of World War II veterans in 1954, Central Pacific bank has served families and small businesses since it opened. From its opening up until today, the bank dedicates itself to giving back to the community.
Bank of Hawaii
The Bank of Hawaii was the first chartered and incorporated bank in the state, having been founded on 27 December 1897. It has helped stabilize the state’s economy through recessions and through its support of the agricultural economy.
First Hawaiian Bank
Founded in 1858, First Hawaiian Bank is the oldest and largest bank in Hawaii, having 57 branches in the state, in Guam, and in Saipan.
Top Cities in Hawaii and Their Lenders
Hawaii has long been considered one of the premier destinations on the face of the planet. This beautiful collection of islands is one of the world’s top tourist destinations. But as you’re well-aware, Hawaii isn’t just for visitors – there are plenty of full-time residents on the islands as well. Many of these residents are small business owners who take advantage of the local tourism industry on the island. In fact, aside from the military, the tourism industry is most definitely the main driving force behind the Hawaiian economy.
As the islands are small, there aren’t many major cities within the state. If you want to start a business in Hawaii, you’ll have to choose between a select few metro areas. Below we will explore the top cities in Hawaii and supply you with the information you need to choose the right local lender in each city! Remember, the lenders available locally in Hawaii are quite limited, so there may not be many options for some of the smaller cities in the state.
Honolulu is by far the largest city in the state of Hawaii. The area is home to the state’s only major airport. It’s also home to the US Navy base and many related tourist attractions. Honolulu is just a short drive from many of the state’s most famous and popular beaches. If you’re thinking of starting a business in Hawaii, there’s a very high chance it will end up being in Honolulu or its surrounding areas.
Bank of Hawaii
Bank of Hawaii is one of the largest local financial institutions in the state of Hawaii. Most of their offices are in the city of Honolulu. They work with a wide variety of different business owners in the region. If you’re looking for a large lender that also has local expertise in Honolulu, this is definitely your best option. We can’t stress how important it is that you find a lender like Bank of Hawaii – they can be the difference between a good and bad lending experience.
First Hawaiian Bank
First Hawaiian Bank is another large lender in the state of Hawaii. They also work with plenty of local businesses in Honolulu to help them find the funding solutions they need to take their business to the next level. If you want a business lender that can help you get the money you need to start a Honolulu-based business, this is a very worthwhile option.
Hilo, Hawaii is on the largest island in Hawaii. The small city is mainly a settlement for the surrounding nature park and reservation area. It’s the perfect place to start a business if you want to cater to these types of areas. Below is the lender you can use in Hilo:
First Hawaiian Bank
Finding a local lender in Hilo can be hard – there isn’t much of a financial industry in the area. That’s why you need to work with other lenders in the state to get the financing you need for your business. First Hawaiian Bank has done a great job of partnering with businesses in Hilo to get the financing they need to start achieving success. They have a firm understanding of the local economy in the region. We highly recommend that all Hilo-based businesses work with this lender.
Kahului is the island of Maui’s largest city. It has a small regional airport, some industrial areas, and retail space. It’s a good alternative to Honolulu if you’re looking for something a little bit low-key. Below is the lender you should use if you start a business in Kahului:
Hawaii State Federal Credit Union
If you’re looking for a lender that has a branch in Kahului, you might find it hard to find the perfect financial services company. Fortunately, Hawaii State Federal Credit Union has a local branch that you can use to get the financing you need for your company. They understand the local economy and have worked with hundreds of small businesses throughout the city and the rest of the island of Maui. You can head into their local branch and discuss your options in person!
Lihue, Hawaii is a very small city in the state – it has only just over 5,000 residents. If you want to start a business in the area, you’ll need to be aware of local regulations. Use the lender provided below if you start a Lihue-based business:
Kauai Community Federal Credit Union
It’s often hard to find reputable lenders in places as small as Lihue, but Kauai Community Federal Credit Union has done a great job of bringing local business owners the financing they need to start and operate their businesses. They provide traditional loans, business lines of credit, as well as SBA-backed loans!
A small business loan is not only used for starting a business, but you can get one to fund construction, buy products in bulk, make upgrades to existing products, or cover the expense of running a business during low seasons. The online process of acquiring loans has brought an improvement in the lending industry with an application taking less than five minutes to complete. Therefore, you do not have an excuse for failing to run a successful small business in this competitive market.
Remember, some of these companies or banks are very specialized and may only handle SBA loans or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don't worry as there still may be other alternative lenders willing to work with you.