U.S. Department of Commerce Invests $1 Million in CARES Act Recovery Assistance to Capitalize Revolving Loan Fund to Serve Businesses Across Hawaii
WASHINGTON – Today, the U.S. Department of Commerce’s Economic Development Administration (EDA) is awarding a $1 million CARES Act Recovery Assistance grant to the State of Hawaii’s Department of Business, Economic Development & Tourism, Honolulu, Hawaii, to capitalize and administer a Revolving Loan Fund (RLF) that will provide critical gap financing to businesses adversely affected by the coronavirus pandemic across Hawaii. The EDA grant, to be matched with $250,000 in local investment, is expected to create 100 jobs, retain 300 jobs, and generate $2.5 million in private investment.
“EDA is committed to helping communities across the nation fight economic hardships brought on by COVID-19,” said Dennis Alvord, Acting Assistant Secretary of Commerce for Economic Development. “This investment will provide the resources that Hawaii needs to rebound from the coronavirus pandemic and, in turn, create a stronger and more resilient economy for the future.”
“Businesses and workers in Hawaii have experienced severe hardship during the pandemic—including sharp declines in revenue and steep increases in unemployment,” said Senator Mazie K. Hirono. “This funding will help businesses across the state recover, while creating opportunities for Hawaii workers that make the state’s economy stronger and more resilient.”
“COVID-19 has had a crushing impact on the economy and people of Hawai’i,” said Congressman Ed Case (HI-01). “Portions of Maui are ranked nationally as the second highest share of jobs at risk from the crisis. Urban Honolulu is ranked 21st of all metro areas nationally. This CARES ACT funding grant of federal emergency assistance through the Economic Development Administration is exactly what Congress intended in directing critical help to affected businesses in the form of much-needed low-interest loans and technical assistance, especially in a time of such limited capital access.”
This project is funded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136 PDF), which provided EDA with $1.5 billion for economic assistance programs to help communities prevent, prepare for, and respond to coronavirus. EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau’s flexible Economic Adjustment Assistance (EAA) (PDF) program, provides a wide-range of financial assistance to eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic.
About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.