Hawaii businesses to receive millions in federal funds program

HONOLULU—The State of Hawai’i has been awarded $13 million in federal funds to support Hawaii’s small businesses through an investment program. These funds are expected to be matched 10-to-1 by private investors over seven years, resulting in $130 million in new funding for small businesses in Hawaii.

“Now is the time for us to invest in industries that will move Hawai’i’s economy forward,” Governor Neil Abercrombie said. “We have tremendous opportunities and potential in our clean energy, film, high-tech and other innovative industries. We must take advantage of these opportunities that will create good paying jobs for our local families, lead our drive toward self-sufficiency and bring dollars into our economy.”

The U.S Department of the Treasury has approved Hawai’i’s application to the State Small Business Credit Initiative (SSBCI).  The SSBCI program was established by the Federal Small Business Jobs Act of 2010 and provides participating states with federal funds for programs that leverage private funds to help small businesses and access the capital they need to expand their operations, invest in new equipment, and create new jobs.

”The program provides a powerful incentive for new private lending to small businesses, which will help spur additional job creation and economic growth throughout Hawai’i,” said U.S. Treasurer Rosie Rios.

The Hawai’i Strategic Development Corporation (HSDC) will use the funds for its venture capital investment program.  HSDC is an attached agency of Hawai’i Department of Business, Economic Development, and Tourism (DBEDT) that supports economic development in Hawai’i by investing in local business ventures in partnership with private funds.

“This award from the U.S. Department of the Treasury is another example of our agencies maximizing opportunities to seek and receive all federal funding available to Hawai’i,” said Lt. Governor Brian Schatz, who oversees the Hawai’i Fair Share Initiative, a program working to secure and expend external sources of funding for our state.  “These funds will provide a much-needed boost to our most innovative start-up companies.”

“We need to create an environment in Hawai’i for innovative industries to thrive. This investment will raise productivity and create good jobs in all areas of the economy and for all people,” said Richard Lim, DBEDT Director.

HSDC will use this investment to commercialize innovative technologies developed at the University of Hawai’i, strengthen the angel investment community in Hawai’i (individuals who have invested more than $30 million in various companies and have played a significant role in Hawai’i's start-up community), and to develop new investment programs that mentor entrepreneurs and help start-up companies successfully compete for follow-on venture capital to grow their businesses. HSDC is developing a plan to best deploy these funds for worthy businesses.

“Venture capitalists play a critical role in supporting the growth of small businesses and job creation in Hawai’i,” said Danton Wong, HSDC Chairman. “This opportunity will empower local entrepreneurs to grow their businesses and build a stronger economy for Hawai’i.”