HCRC Emergency Loan Program HELP May 8, 2020 Heather Piper, - - PowerPoint PPT Presentation

HCRC Emergency Loan Program HELP

May 8, 2020 Heather Piper, Executive Director Hawaii Community Reinvestment Corporation

Hawaii Community Reinvestment Corporation - HCRC

Hawaii Community Reinvestment Corporation (HCRC) is a 501(c)3 community-based non-profit corporation founded in 1990. HCRC is designated a Community Development Financial Institution (CDFI) and Community Development Entity (CDE) by the U.S. Department of Treasury. The mission of HCRC is to facilitate affordable housing, community development, and economic development throughout the State of Hawaii by providing innovative financing, training and consulting services.

HCRC Emergency Loan Program

Overview

In direct response to Hawaii’s pandemic recovery efforts, HCRC has raised $1,000,000 for the HCRC Emergency Loan Program (HELP) to provide loans to organizations impacted by the COVID19 outbreak and are in immediate need of financial assistance. HCRC is providing short-term bridge loans and term loans, starting at $15,000, to non-profit

• rganizations and mission aligned small businesses that are otherwise unable to secure

financing and are in immediate need of capital as a result of the COVID19 crisis. Loans will be made available to organizations that remain open to continue to provide essential services as well as organizations deemed non-essential service providers that have been forced to partially or fully shut down operations temporarily

HCRC Emergency Loan Program

Community Benefits: Impacts & Outcomes

• Create Livable Wage Jobs
• Number of Jobs with Benefits Created or Preserved - Full

Time, Part Time, Seasonal and Construction

• Expand Workforce Development & Post-Secondary Education
• Number of Participants in Vocational Training Programs
• Number of Residents Hired and Trained by Businesses
• Number of Programs Offered to Adults
• Expand Entrepreneurship & Business Development
• Number of New Businesses Created
• Increase in Revenue of Existing Businesses
• Uses Locally Sourced Suppliers
• Expanded Access to Health Care, Residential Care and Assisted

Living Facilities

• Number of Patients Served or Beds Created
• Expand Access for Youth Education - Child Care, Preschool, K-

12

• Number of Spots Created or Youth Enrolled
• Expand Access to Affordable & Reliable Transportation
• Provide connectivity and Transportation choices
• Improve Housing Affordability
• Net Number of Housing Units Built or Preserved – Market,

Workforce, Student and Affordable

• Improve Environmental Sustainability
• Number of Kilowatts Produced from Renewable Energy

Sources

• Number of Kilowatts Reduced from Energy Efficient Projects
• Pounds of Solid Waste Diverted from Landfills
• Pounds of Recycled/Redistributed Goods
• Improve Food Sustainability & Security
• Pounds of Food Grown, Produced, Distributed, or Sold
• Acres in production
• Square Footage of new Warehouse or Cold Storage Facilities

Constructed or Improved

• Promote, Perpetuate and Preserved Culture and the Arts
• Square Footage dedicated to Art and Recreation Usage
• Number of Participants in Art and Recreation Programs
• Revitalization of Neighborhoods with High Vacancies or Crime
• Square Footage of Commercial, Retail or Community Facilities

Constructed or Improved

HCRC Emergency Loan Program

Terms

• Loan Amount: $15,000 to $100,000
• Loan Term: 6-Month Bridge Loan that converts to a 42-

Month Term Loan for a total of 48-Months

• Interest Rate: 3% fixed for the 6-Month Bridge Loan

period and 5% fixed for the 42-Month Term Loan period

• Application Fee: None
• Loan & Documentation Fee: $250.00 for Loan Amounts

$25,000 or less and $500.00 for Loan Amounts greater than $25,000

• Acceptable uses of loan proceeds includes payroll, rent
• r interest on mortgage, utilities, and other operating

expenses necessary for organizations to remain open

• Repayment Terms: Monthly payments of interest only

during the Bridge Loan period Monthly payments of principal and interest (fully amortized) during the Term Loan period. Balance due at loan maturity

• Collateral: Unsecured or UCC Lien of Business Assets
• Non-profit organizations are not required to provide a

personal guarantee as long as their board of directors is comprised of a majority of independent voting directors.

• For profits businesses are required to have all individuals

with a 20% ownership interest in the organization provide a personal guarantee

HCRC Contact Information

Website: HCRCHAWAII.COM Email: HELP@HCRCHAWAII.COM Chelsea Schull – LISC-HCRC Hawaii Program Officer info@hcrchawaii.com Heather Piper – Executive Director executivedirector@hcrchawaii.com