Capital Assistance Loans (HI-CAP)

What is HI-CAP?

In 2022, $62 million in federal funding was secured to expand access to capital for small businesses, startups, and entrepreneurs in Hawaiʻi. The funding will be deployed over a period of seven years until 2030.

The HI-CAP program is funded by the U.S. Treasury for the State Small Business Credit Initiative (SSBCI), a part of the American Rescue Plan Act of 2021. The program is jointly managed by HTDC and the Hawai‘i Green Infrastructure Authority (HGIA). Both state agencies are attached to the Department of Business, Economic Development and Tourism (DBEDT).

Eligibility

Learn who can apply for capital assistance loans through HI-CAP.

Businesses

Most businesses are eligible for HI-CAP loan programs and must meet State Small Business Credit Initiative (SSBCI) guidelines as dictated by the U.S. Treasury. As a department of the Treasury and Hawaiʻi state objective, HI-CAP will be targeting small businesses and Socially and Economically Disadvantaged Individual (SEDI) business owners. See next section for complete list of loan programs.

Venture Capital Funds

The fund must have on-the-ground presence in Hawaiʻi.
The fund will invest an amount equal to HTDC’s capital in Hawaiʻi businesses.
Private capital is pari passu with, or junior to, the SSBCI investment in cash flow rights.
The fund is not excluded from receiving Federal contracts, certain subcontracts and certain Federal financial and nonfinancial assistance and benefits.
The fund will make available to the Treasury Inspector General all books and records related to the use of funds.
A minimum of 1:1 matching capital to HTDC’s investment will be raised.
Fund managers are in good standing with the law, as confirmed by up-to-date certifications, background check, references, and/or any other means deemed appropriate.
Funds that are aligned with HTDC and DBEDT priorities, which includes but is not limited to: digital manufacturing, defense, energy, creative, ocean economy, and exports OR
Funds that are aligned with opportunities identified by our socially economically disadvantaged individual (SEDI) facing partners, which includes but is not limited to: social impact, sustainability, food security, agriculture, climate change and land conservation.

What Types of Loans Are Available?

Programs Administered by HTDC

For questions about the HI-CAP Invest program, please email hicap@htdc.org with any questions. Also see our notice regarding conflict of interest and SSBCI insiders.

Program Name	Administered by	Description	Apply
HI-CAP Invest	HTDC	Suited for managers of venture capital (VC) funds. This “Funds-of-Funds Venture Capital” program is designed to invest in high quality investment managers with the capacity to mentor and advise entrepreneurs and facilitate follow-on investments. If you are a VC fund interested in being considered for HI-CAP Invest, please apply.	Apply for the HI-CAP Invest Program

Loans Offered by Our Partners

Additional offerings for capital assistance are also available. Depending on the offering that would be most helpful to your business, the application will be done through our administrative partners and the process will vary per program. For instance, if you are interested in HI-CAP collateral, you will apply for capital assistance through your local bank. See each link below for details on how to apply.

Program Name	Administered by	Description	Apply
HI-CAP Collateral	Our local financial institutions	Suited for small businesses and nonprofits where collateral is needed to be approved for a loan. The state will work with local financial institutions to provide collateral to help you secure the loan.	Apply for the HI-CAP collateral program
HI-CAP Loans	HGIA	Suited for businesses and non-profits spearheading transformative projects with community impact. The state will lend capital to help bring eligible projects to reality. Projects considered transformative include (but are not limited to) those in renewable energy, innovation, local agriculture, dual-use technology, manufacturing, or creative industry projects that spur economic development.	Apply for the HI-CAP loans program
HI-CAP Community Development Financial Institutions (CDFI) Loan Pool Program	Our network of CDFI partners	Suited for small businesses requiring micro loans. The state will work with Hawaiʻi’s CDFI’s to provide capital, which will in turn serve as loans to Hawaiʻi’s small businesses. If you are a business, your application will be done through a CDFI. Please email dbedt.hicap-loans@hawaii.gov with any questions.	If you are a CDFI that is considering participating, learn about the application process and apply.

Are There Other Forms of Assistance for Companies?

Yes, the HI-CAP is currently working on the structure of the Technical Assistance program (TA), a grant program funded by the U.S. Department of Treasury for the purpose of providing legal, accounting, and financial advisory services to companies who intend to participate in the HI-CAP program or other federal programs that support small businesses. Those eligible for this grant award will become TA program providers and will be required to provide legal, accounting, or financial advisory services.

When the TA program is activated, small businesses will be able to:

Access vetted services easily and quickly
Obtain the tools needed to better utilize federal programs, for instance gaining assistance in securing licenses and certifications as well as preparing essential documentation and financial statements, etc.

The TA program is meant as a stepping stone for small businesses who do not know where to start in the event that they are interested in applying for a federal small business program. Upon approval of the State of Hawaiʻi’s TA plan by the Treasury, more information on the program will be announced publicly. We recommend signing up for the HI-CAP mailing list for future updates.

Still Have Questions?

Email us at hicap@htdc.org.