Bank of Hawaii Small Business Loans Review
Bank of Hawaii offers small business term loans and SBA lending opportunities to eligible business owners. Borrowers can get rates as low as 7%, loans up to $50,000, and terms up to five years. This bank might be a good choice for business owners who are starting out and who live near a bank branch.
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What we like:
Low maximum interest rate
|Estimated APR||7.00% – 14.00%|
|Loan Amounts||$5,000 – $50,000|
|Term Lengths||3 – 5 years|
Bank of Hawaii has been serving the needs of Hawaii residents for over 120 years, including catering to the needs of small businesses on and around the islands.
Headquartered in Honolulu, Bank of Hawaii is one of the most popular banking institutions in the state and has 73 branches, with the majority located within the Hawaiian Islands. However, there are a few locations in Guam, Saipan, and Palau, as well as one in American Samoa.
Getting Small Business Financing Through Bank of Hawaii
Bank of Hawaii offers term business loans, SBA loans, and equipment leasing opportunities. They recently discontinued its business lines of credit. Business owners interested in lending solutions through Bank of Hawaii can apply by visiting a local branch; applications cannot be submitted online.
Bank of Hawaii reviews each loan application on an individual basis and determines rates, fees, and limits based on not only credit history but the overall business plan and goals presented by the applicants. As such, bank representatives recommend bringing a completed business plan and financial documentation, which will be considered when reviewing the application and making loan determinations.
Basic Information: Rates, Terms, Fees, and Limits
In addition to providing SBA loans, which adhere to the rates, terms, and requirements set forth by the Small Business Administration, Bank of Hawaii’s main loan product is their business term loan.
Bank of Hawaii term loan provides business owners with the capital necessary for a variety of activities, including business expansions, building repairs, and management of operational expenses.
Fees, terms, limits, and rates are highly individualized, but on average, approved borrowers can access anywhere from $5,000 to $50,000. Bank of Hawaii offers multiple flexible repayment terms of 24, 36, 48, or 60 months.
Interest rates are determined by a variety of factors, including but not limited to credit history, existing debt, revenue, and type of business. Additionally, rates are also dependent on the selected loan term, with loan terms between 24 and 36 months yielding an APR between 7% and 13.5% and loan terms between 48 and 60 months yielding an APR between 8% and 14%.
You can check our Best Small Business Loans page to find other lenders who offer loans to residents of Hawaii. You can typically apply for loans from these lenders completely online.
Bank of Hawaii is a long-standing banking institution that has been serving Hawaii and the surrounding area for decades, and its personalized approach can be attractive to small business owners, particularly those just starting their business or who may not qualify for loans at some of the larger, less personable banking intuitions.
Additionally, Bank of Hawaii offers a full-service business solution, allowing business owners to meet their checking and savings needs while taking advantage of features like payroll services, retirement plans, and merchant services.
Though Bank of Hawaii does offer a variety of business banking services, its decision to terminate the business lines of credit might deter some business owners. You can find other business lines of credit options here, if that’s what you are interested in. Additionally, though the rates are lower than many lenders, qualified borrowers may be able to secure slightly better rates (less than 7%) at larger banks.
Though they do have an online presence, the application process must take place within a branch, and as such, the Bank of Hawaii might not be a good fit for those who are looking to secure capital quickly or want to minimize trips to a local branch.
In the end, the Bank of Hawaii has served and continues to serve the needs of small business owners within the Hawaiian Islands as well as those in Guam, Saipan, Palau, and American Samoa. However, if you’re looking for a wide variety of small business financing options, or if you’d like a more robust online presence, you might want to consider a lender that offers those features.3.96 Bank of Hawaii Small Business Financing
Author: Jeff Gitlen