RELEASE: Banking and Financial Resources Available During COVID-19Posted on Apr 8, 2020 in News Releases
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DIVISION OF FINANCIAL INSTITUTIONS
DAVID Y. IGE
CATHERINE P. AWAKUNI COLÓN
IRIS K. IKEDA
COMMISSIONER OF FINANCIAL INSTITUTIONS
FOR IMMEDIATE RELEASE
April 8, 2020
Banking and Financial Resources Available During COVID-19
Honolulu – The Department of Commerce and Consumer Affairs, Division of Financial Institutions encourages the public to contact their financial institutions and government agencies to discuss opportunities for financial assistance during the COVID-19 pandemic.
“We encourage both individuals and businesses to look into the available financial assistance programs being provided. Banks and financial institutions are ready to support the federal stimulus initiatives and are continuing to provide services for consumers,” said Iris Ikeda, Hawai‘i Commissioner of Financial Institutions.
Nearly $2.2 trillion in emergency economic relief will be made available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law in late March. Local and national banks will be processing Small Business Association (SBA) loans and in particular the Paycheck Protection Program (PPP) of the CARES Act.
The PPP authorizes up to $349 billion in loans to small businesses to pay their employees during the COVID-19 pandemic. The program is available to all businesses with 500 or fewer employees to include nonprofits, veterans’ organizations, tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors. Loans granted through the PPP will be at a fixed term and are to be used to cover payroll costs including healthcare benefits, loan and rent payments, and utilities. Loan forgiveness is subject to the borrower using all of the loan proceeds for forgivable purposes and maintaining its employee and compensation levels.
“Banks are now accepting applications from Hawai‘i’s small businesses. The funding is made on a first come first served basis, so I urge all to contact your bank immediately to start the process,” added Ikeda.
On April 3rd, loan applications were opened for small businesses and sole proprietors and starting April 10th, independent contractors and self-employed individuals would be able to apply. Applicants need to apply through an approved SBA lender or any federally insured financial institution and are strongly encouraged to apply as soon as possible while funding remains available.
More details and information about the program is available on the United States Treasury website at https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses. A borrower’s fact sheet can be found at https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf.
In addition to being available to facilitate emergency initiatives provided through the federal CARES Act, Hawai‘i’s banks remain available to their clients and are assisting in many ways by:
- Providing relevant information about COVID-19 and the financial assistance programs being offered;
- Offering loan deferments and loan modification options;
- Making available small consumer loans up to $8,000;
- Maintaining physical banking branches and limiting closures across the state;
- Bolstering call center operations to assist with inquiries; and
- Waiving certain fees such as ATM surcharges and early withdrawal fees for time certificates.
In order to receive the available financial assistance, the public is reminded that they need to reach out to their financial institution to request the assistance and to discuss what options are available to them.
Additional information on the CARES Act and what Hawai‘i’s residents and business should do to seek financial assistance were provided in Governor David Ige’s Community Connection held yesterday, link at https://www.facebook.com/GovernorDavidIge/videos/2293014734334545/.
In an opinion editorial published in the Honolulu Star-Advertiser on April 6th, Commissioner Ikeda emphasized the strength of Hawai‘i’s banking industry and that it is committed providing for Hawai‘i throughout the COVID-19 pandemic. Column: Hawai‘i’s banks strong, committed to help during pandemic (https://www.staradvertiser.com/2020/04/06/editorial/island-voices/column-hawaiis-banks-strong-committed-to-help-during-pandemic/).
The Hawai‘i Division of Financial Institutions (DFI) ensures the safety and soundness of state-chartered and state-licensed financial institutions, and ensures regulatory compliance by state-licensed financial institutions, escrow depositories, money transmitters, mortgage servicers, mortgage loan originators and mortgage loan originator companies, by fairly administering applicable statutes and rules, in order to protect the rights and funds of depositors, borrowers, consumers and other members of the public. Website: https://cca.hawaii.gov/dfi/. Twitter: @HawaiiDFI
Department of Commerce and Consumer Affairs
Email: [email protected]
Phone: (808) 586-7582