Hawaii Emergency Agricultural Loan Program (ELP)

The State of Hawai'i Department of Agriculture and Biosecurity, Agricultural Loan Division administers an emergency agricultural loan program to assist farmers and ranchers suffering damage from natural disasters. The program is activated by the Hawai'i Board of Agriculture and Biosecurity for specific emergency events, with parameters (maximum loan amount, interest rate, application deadline) set on a case-by-case basis per activation. For the August 22, 2023 activation assisting Maui and Hawai'i Island farmers and ranchers suffering damage from high winds and wildfires, the Board approved the following parameters: Maximum loan amount $350,000.00; Interest rate 3%; terms determined on a case-by-case basis based on historical farm performance and projected cash flow. For agribusinesses and farmers needing loans of $50,000 or less, micro-loans involving less paperwork and swifter processing are available.

Hawai'i farmers and ranchers who lost production to a declared disaster. Individuals apply directly — "Sole proprietors, partnerships, corporations, and cooperatives are among the legal forms of businesses eligible to apply for a loan." But two things gate this program that do not gate most disaster loans: it only exists when the state activates it, and it is a lender of last resort.

It has to be turned on first. "Emergency Loans are available to provide relief and rehabilitation due to environmental disasters, disease epidemics, and other economic emergencies. Emergency Loans are activated by declaration of a disaster by the Governor and are at an interest rate not less than 3% per annum. The Board of Agriculture determines the loan amount and terms." There is no standing open application — if no activation covers your event and your island, there is nothing to apply for. Scope is bounded too: "the scope of any loans under this program shall be limited to the emergency period (under which the losses caused by the emergency shall have taken place). However, the program may accept applications after the emergency period ends."

Lender of last resort — you must be turned down first. "Prospective applicants must inquire with and be denied credit from private sector lenders prior to filling an application," and 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." This requirement can be waived per activation — for the August 22, 2023 Maui and Hawai'i Island wildfire activation, the "Credit denial requirement has been waived."

The underlying farmer test (Qualified Farmer). A Qualified Farmer is: "A citizen of the United States who has resided in Hawaii for the preceding three years, or any permanent resident alien who has resided in Hawaii for the preceding three years; and A person of proven farming ability who has operated their own farm for two or more years; and A person who devotes most of their time or derives most of their net income from the farming operation." For entities: "Eligible partnerships are controlled by at least seventy-five percent by persons who qualify individually. Eligible corporations are those where at least seventy-five percent of the stockholders and directors qualify individually." Cooperatives must have a majority of directors and a majority of members qualifying individually.

Note that an activation can relax these. In the 2023 wildfire activation, "The 3-year residency requirement for U.S. Citizens and permanent resident aliens shall not apply," and "Collateral requirements may be modified or waived, as necessary, on a case-by-case basis."

No acreage minimum or income floor is published. Approval is a credit decision — "aspects such as repayment ability, collateral, and credit history, economic and environmental conditions, and historic performance will be taken into consideration" — and the Board of Agriculture gives final approval (micro-loans of $50,000 or less can be approved by the Board Chairperson, with less paperwork and faster processing).

Before you assume you qualify, ask which activation is live. Call the Agricultural Loan Division — Honolulu (808) 973-9458 or (808) 973-9460, HDOA.AGLOAN@hawaii.gov — or the O'ahu, Hilo, Kona, Kaua'i, Maui or Moloka'i office. The Division says loan officers "are available to assist you in determining your eligibility for the loan program." Note also that HAR Chapter 4-8 is under active amendment (public hearing March 2026) — including a change to a single credit denial and "Interest and conditions for emergency loans will be determined by the Department of Agriculture board" — so confirm current rules rather than relying on the 2023 parameters.

Terms are determined on a case-by-case basis as needed, based on historical farm performance and projected cash flow. (2023 wildfire activation) Interest rate 3%; the 3-year residency requirement for U.S. Citizens and permanent resident aliens shall not apply; collateral requirements may be modified or waived on a case-by-case basis; the credit denial requirement is waived. Pursuant to Section 4-8-15, Hawai'i Administrative Rules, the scope of loans under an emergency activation is limited to the emergency period in which the losses occurred, though the program may accept applications after the emergency period ends.

For further information, please call the Agricultural Loan Division in Honolulu at 808-973-9458 or email HDOA.AGLOAN@hawaii.gov.