There are two primary types of small-business loans — a 7(a) loan and a 504 loan. The 7(a) loan is considered the more flexible of the two because it can be used for a broad number of business purposes. The 504 loan is collateralized against property like real estate or fixed assets like heavy equipment.

On June 1, the U.S. Small Business Administration relaunched a 7(a) loan program that initially began in February 2011 by increasing the number of banks that could participate. The program, Small Loan Advantage 2.0, also raised the maximum amount that can be loaned out under this program to $350,000 from $250,000.

"The bottom line is it’s a better program reaching more people," said Elizabeth Echols, regional administrator for SBA Region IX, which includes the Hawaii District. "It’s filling an important need for those lower-dollar loans."

Before the relaunch, only two Hawaii District loans totaling $135,000 had been approved in the first eight months of the initial program. Since the relaunch, seven loans through Aug. 10 had been granted totaling $1 million.