Hirono, Hawaii Delegation Urge SBA to Provide Relief for Maui Businesses Impacted by Wildfires

WASHINGTON, D.C. – Today, U.S. Senator Mazie K. Hirono (D-HI), a member of the Senate Committee on Small Business and Entrepreneurship, led the Hawaii Congressional delegation in a letter to Isabel Guzman, Administrator of the U.S. Small Business Administration (SBA), urging the agency to pause loan payments and interest accruals for SBA disaster loans that pre-date the Maui wildfires. In addition to Senator Hirono, the letter was also signed by Senator Brian Schatz (D-HI) and Representatives Jill Tokuda (D-HI) and Ed Case (D-HI).

“We are concerned Maui businesses will still have a difficult time weathering the coming months due to the current economic conditions in the affected areas, which, by some estimates, are losing $2.7 million in business revenue every day,” wrote the lawmakers.

According to the SBA, over $66 million in disaster loans have been approved for businesses, nonprofits, homeowners, and renters to date. However, many West Maui businesses are hesitant to apply for additional SBA disaster loans because they are still paying off loans from the pandemic.

“Given the extenuating circumstances, we strongly urge you to use authority under the Small Business Act to provide Maui businesses with additional relief, including by pausing payments and interest accruals for SBA disaster loans that pre-date the wildfires for at least a year and reevaluating the need when payments are scheduled to resume,” concluded the lawmakers. “Such relief is more than warranted given the devastating impact the wildfires have had on Maui businesses and would help to ensure these businesses can continue to survive.”

The full text of the letter is available here and below.

Dear Administrator Guzman:

Thank you again for your demonstrated commitment to supporting businesses, nonprofits, homeowners, and renters affected by the Hawaii Wildfires. We appreciate the Small Business Administration’s (SBA) continued efforts to support those who have been affected by the wildfires, especially those in West Maui.

Following President Biden’s approval of a disaster declaration for the wildfires, SBA has been working to rapidly approve disaster loans for those who were affected, with more than $66.2 million in loans approved to date. Such loans will provide much-needed assistance for businesses and others as we start to rebuild in West Maui.

Despite this assistance, we are concerned Maui businesses will still have a difficult time weathering the coming months due to the current economic conditions in the affected areas, which, by some estimates, are losing $2.7 million in business revenue every day. Many of these businesses were just starting to recover from the COVID-19 pandemic. As a result, some are still repaying SBA disaster loans from the last few years.

Given the extenuating circumstances, we strongly urge you to use authority under the Small Business Act to provide Maui businesses with additional relief, including by pausing payments and interest accruals for SBA disaster loans that pre-date the wildfires for at least a year and reevaluating the need when payments are scheduled to resume. Such relief is warranted given the devastating impact the wildfires have had on Maui businesses and would help to ensure these businesses can continue to survive.

Thank you for your consideration. We look forward to your response.

Sincerely,

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