A new program under the Office of Hawaiian Affairs’ Native Hawaiian Revolving Loan Fund promises to assist farmers struggling to obtain farm loans.

The new Mahi ‘Ai Agricultural Loan Program sprouted from community outreach visits across the state in 2019 by revolving loan fund officials who heard farmers’ concerns, according to fund manager Clarence Aikue Kalima.

“From the federal government, there are very specific requirements that, unfortunately, some of our Native Hawaiian beneficiaries could not meet,” he said. “Some programs required that if they’re farming, it had to be a crop-producing farm or they could only be farming a specific way.”

Some loan programs turn away farmers who use alternative methods such as hydroponics, while others might support only food- producing farms, Kalima said. Meanwhile, others who farm seasonal crops sometimes struggle to make payments in the first months before their crops produce income.

The Mahi ‘Ai program, which can be used for startups and existing operations, offers loans between $2,500 and $100,000 for up to a seven-year term. There are no restrictions on how crops are grown, the type of crop being produced or the size of the farm. Borrowers also will have the option to defer loan payments over the first six months.

Kalani Umi, owner of Umi’s Farm on Kauai, said the loan program is ideal for new farmers. After starting his farm in 2016 with the help of an OHA Malama Business Loan, he shared his perspective with OHA on some of the struggles farmers might face as the Mahi ‘Ai program was being developed.

“The target for the Mahi ‘Ai is people who need that initial startup cost — say, for somebody who graduates from the Go Farm incubator program and now they’re really focusing on getting their own land and starting their own real farm,” Umi said.

The minimum loan amount is manageable enough that farmers can feel comfortable starting small, he added.

And while the process for applying for a loan like this can be intimidating for new farmers, Kalima said the program has resources to support Native Hawaiian beneficiaries through the application process. For example, although startup farms are required to submit a business plan, those needing assistance with that can find help through resources OHA offers through its community partnerships on each island, Kalima said.

Since the Mahi ‘Ai program was announced in late May, the community response has been positive, he added.

“If the native, Indigenous culture and people are doing well, then it does positive things for the entire state,” Kalima said. “The support of the Kanaka Maoli shows that the state cares and that the aloha spirit here is thriving.”

Linsey Dower covers ethnic and cultural affairs and is a corps member of Report for America, a national service organization that places journalists in local newsrooms to report on undercovered issues and communities.