Haw. Code R. § 15-5-5 - Purpose of loans
(a) The department
may make loans to applicants to develop new or substantially modified products
or inventions. The loans shall be for the purpose of financing acquisition of
equipment, machinery, materials, or supplies, or for product
development.
(b) Loans shall not be
granted in any of the following instances:
(1) Where the direct or indirect purpose or
result of granting the loan would be to:
(A)
Pay off a creditor or creditors of the applicant who are inadequately secured
and are in a position to sustain a loss; or
(B) Provide funds, directly or indirectly,
for payment, distribution, or as a loan to owners, partners, or shareholders of
the applicant's business; or
(C)
Refund a debt owed to a small business investment company; or
(D) Replenish funds heretofore used for any
of the purposes stated in this paragraph; or
(2) Where the purpose of the applicant in
applying for a loan is to effect a change in ownership of a business, unless
the change is for a purpose approved by the director; or
(3) Where the loan will provide or free funds
for speculation in any kind of property, real or personal, tangible or
intangible; or
(4) Where any part
of the gross income of the applicant (or any of its principal owners) is
derived from gambling or other illegal activities.
Notes
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