Hawaii Alternative Energy Loan Program

The Hawaii Alternative Energy Loan Program is part of the Hawaii Agricultural Loan Division.

The State of Hawaii, Department of Agriculture’s Agricultural Loan Division administers the Agricultural Loan Program and the Aquaculture Loan Program. The intent of the programs is to help promote agricultural and aquacultural development of the State by providing credit at reasonable rates and terms to qualifying individuals or entities. Through the establishment of a revolving loan fund, credit is made available by supplementing private lender sector loan funds or by providing direct funding.

Considered a “lender of last resort”, the program is not intended to compete with private sector lenders. Prospective applicants must inquire with and be denied credit from private sector lenders prior to filling an application. In addition, prospective applicants must fulfill applicable eligibility requirements. Applicants that are not able to obtain denials from the private lending sector may inquire with the private lender on the possibility of utilizing the insured/guaranty and/or participation loan facilities.

Act 209 was enacted in 2008 to establish a new loan program to help full-time farmers, ranchers, and aquaculturalists to reduce dependence on fossil fuel by producing renewable energy through sources such as photovoltaic, hydroelectric, wind, methane, biodiesel, and ethanol. The act also allows for loans for food safety projects to ensure a safe food supply for Hawaii’s people.

In order to be eligible for a direct loan, applicants must be denied credit from two lenders, which include banks, savings and loan associations, credit unions, mortgage loan companies, the Farm Credit System and/or the U.S. Department of Agriculture.

Direct state loan (or private-lender participation) for on-farm renewable energy and food-safety projects.

• Amount: "The maximum loan amount is $1,500,000 or 85 percent of the project cost, whichever is less." So you must bring at least 15% of project cost.

• Term: "The program offers favorable interest rates with a maximum loan term of 40 years."

• Eligible uses: "Funds can be used for infrastructure, equipment, land improvement and operating costs associated with the project."

No interest rate is published on the program page — it says only "favorable interest rates," and the division describes the fund generally as "providing credit at reasonable rates and terms." A rule amendment proposed by the department (notice of public hearing, testimony closed March 6, 2026) would set HAR 4-8-12 interest rates "to a flat rate of four (4) per cent for most qualified Classes and three (3) per cent for new farmers and others specified loan classes" — treat that as proposed, not adopted, and confirm the current rate with a loan officer.

Practical catch: this is a lender of last resort. "In order to be eligible for a direct loan, applicants must be denied credit from two lenders." Applicants who cannot obtain denials may instead ask a private lender about the insured/guaranty or participation loan facilities.

Loan applications may be obtained from any Agricultural Loan Division Office. Loan Officers are available to provide assistance and guidance on the loan process.

Prior to obtaining and completing the loan application, it is recommend that you meet with or call one of our loan officers. They are available to assist you in determining your eligibility for the loan program and to guide you through the application process.

• Micro Loan Application

• Personal Financial Statement

• Expense Projection Sheet

• Income Assumptions

• Monthly Cash Flow Projections

• Food Manufacturing Income Assumptions