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



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



(2)  For a commercial loan, had operated an
industrial, manufacturing, processing, wholesaling, or retailing business, or
professional or service business, or building rental business, immediately
before the disaster;



(3)  Presents a suitable program for:



(A)  Rehabilitation or re-establishment of the
applicant's business to its predisaster level when applying for a commercial
loan; or



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



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



(5)  For a commercial loan, presents written evidence
that the Small Business Administration had declined an application for
financial assistance under the Small Business Administration Disaster Loan
Program or has reduced the amount of the loan request; provided that the
declination was not due to the applicant's having sufficient financial
resources to rehabilitate the applicant; or



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



Paragraph (6) shall be applied in the
alternative 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, c
336, §7; am L 1990, c 293, §8; am L 1997, c 383, §38]