§209-29  Eligibility for loans.  Loansmay be made to individuals, partnerships, corporations, cooperatives, or otherbusiness associations, but only if the applicant:

(1)  Suffered loss of or damage to property in arehabilitation area as a result of a state disaster;

(2)  For a commercial loan, had operated anindustrial, manufacturing, processing, wholesaling, or retailing business, orprofessional or service business, or building rental business, immediatelybefore the disaster;

(3)  Presents a suitable program for:

(A)  Rehabilitation or re-establishment of theapplicant's business to its predisaster level when applying for a commercialloan; or

(B)  Meeting necessary expenses and satisfyingthe serious needs of the applicant and the applicant's family includingreciprocal beneficiary when applying for a personal loan;

(4)  Has reasonable ability to repay the loan; and

(5)  For a commercial loan, presents written evidencethat the Small Business Administration had declined an application forfinancial assistance under the Small Business Administration Disaster LoanProgram or has reduced the amount of the loan request; provided that thedeclination was not due to the applicant's having sufficient financialresources to rehabilitate the applicant; or

(6)  For a commercial loan, cannot secure any loansfrom the Small Business Administration Disaster Loan Program because the makingof the loans is not covered by the program, and the director of business,economic development, and tourism is reasonably satisfied that the applicant isnot able to secure loans from private lending institutions and does not havesufficient financial resources to rehabilitate the applicant.

Paragraph (6) shall be applied in thealternative with respect to paragraph (5) of this section. [L 1961, c 189, §15;Supp, §98P-15; HRS §209-29; am L 1976, c 205, §1(2); gen ch 1985; am L 1987, c336, §7; am L 1990, c 293, §8; am L 1997, c 383, §38]