KAILUA-KONA — The state Board of Agriculture on Tuesday approved parameters for emergency low-interest agricultural loans for farmers suffering damage due to the heavy rain and flooding on Kauai and Oahu in April and the current eruption phase at Kilauea Volcano.
The board approved the emergency loan program, which offers disaster-related loans of up to $500,000 at an interest rate of 3 percent, with loan terms to be determined on a case-by-case basis.
The state Department of Agriculture Agricultural Loan Division will process loan applications based on past farm production, projected cash flow and disaster recovery plans.
Three-year residency and other requirements usually necessary for agricultural loans will also be waived. Loan applications will be accepted until June 2019.
“The financial burden of the recent natural disasters hits the agriculture industry particularly hard,” said Scott Enright, chairperson of the state Board of Agriculture. “HDOA’s agricultural loan program will do its best to help our farmers and ranchers get back in business as soon as possible.”
In addition to the disaster loan program, the state also offers microloans of up to $25,000 that involve less paperwork and swifter processing. Loan officers will also work with those with existing agricultural loans on loan payment deferrals. The Agricultural Loan Division may be contacted at 973-9460.
For loan assistance and more information on the Agricultural Loan Program, visit http://hdoa.hawaii.gov/agl.