• Puhi Industrial Park Reduces Fees • SBA expands eligibility for loans Puhi Industrial Park Reduces Fees Hawaiiana Management Company, Ltd. announced this week that Puhi Industrial Park Association has reduced maintenance fees by 36 percent. This reduction represents a
• Puhi Industrial Park Reduces Fees
• SBA expands eligibility for loans
Puhi Industrial Park Reduces Fees
Hawaiiana Management Company, Ltd. announced this week that Puhi Industrial Park Association has reduced maintenance fees by 36 percent. This reduction represents a savings to association members, most who are small business owners, of over $27,000 for 2009.
Board Member Lesther Calipjo is credited with suggesting the reduction while maintaining the integrity of the Association. The 80-unit light industrial development was developed by Grove Farm in the early 1990s and is served by a volunteer board of directors. In addition to President Dennis Esaki, other Board Members are Lesther Calipjo-Vice President, Gary Smith-Secretary/Treasurer and Jack Locicero-Director.
Hawaiiana, a locally owned and operated company, is Hawai‘i’s largest association management company.
For more information, contact Sunshine Ruiz, Director of Kauai Operations for Hawaiiana at 240-3218, Extension 896 or visit their website at hmcmgt.com
More small businesses will be eligible for U.S. Small Business Administration-backed loans, meaning greater access to much-needed capital in this tough economy, as a result of a temporary alternate size standard for the agency’s largest lending program.
SBA expands eligibility for loans
SBA’s alternate size standard for its 7(a) loan program will go into effect early next week through Sept. 30, 2010. As a result of the temporary change, more than 70,000 additional small businesses — including auto and RV dealerships, auto industry suppliers and others — could be eligible to apply for SBA 7(a) loan.
The temporary 7(a) loan size standard will parallel the standard for the agency’s 504 Certified Development Company loan, and will allow businesses to qualify based on net worth and average income. The net worth for the company and its affiliates can’t be in excess of $8.5 million and average net income after federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years can’t be more than $3 million. The alternate size standard is available at the offices of The Federal Register today and will be published as an interim final rule early next week.
The temporary change to the 7(a) loan size standard is not unprecedented. SBA took similar actions in 1993, as a result of the recession of the early 1990s, and again in 2005 as part of a program aimed at helping small businesses in the wake of hurricanes Katrina and Rita.
This change also means more small businesses can take advantage of benefits made possible through the Recovery Act. On March 16, the SBA implemented two key provisions of the Recovery Act that raised the guarantee on 7(a) loans to 90 percent and reduced fees for borrowers. Since then, the agency has seen average weekly 7(a) loan volume increase by more than 25 percent and new SBA loans made by nearly 450 lenders who had not made loans since October 2008.
For more information about SBA’s revisions to its small business size standards, visit www.sba.gov/size/indexwhatsnew.html and click on “What’s New about Small Business Size Standards.”
