[§211D-3]  Capital access program.  (a) The department shall establish a capital access program to assist aparticipating financial institution in making loans to businesses and nonprofitorganizations that face barriers in accessing capital.

(b)  The department shall use money in the fundto make a deposit in a participating financial institution's reserve account inan amount specified by this chapter to be a source of money the institution mayreceive as reimbursement for losses attributable to loans in the program.

(c)  The department shall determine theeligibility of a financial institution to participate in the program and mayset a limit on the number of eligible financial institutions that mayparticipate in the program.

(d)  To participate in the program, an eligiblefinancial institution shall enter into a participation agreement with thedepartment that sets out the terms and conditions under which the departmentwill make contributions to the institution's reserve account and specifies thecriteria for a loan to qualify as a capital access loan.

(e)  To qualify as a capital access loan, aloan shall:

(1)  Be made to a small or medium-sized business or toa nonprofit organization;

(2)  Be used by the business or nonprofit organizationfor any project, activity, or enterprise in Hawaii that fosters economicdevelopment; and

(3)  Meet any other criteria provided by this chapter.[L 2000, c 290, pt of §2]