Jeff Gilbreath Director of Lending and Development
March 18, 2020
Hawaii Community Lending Offers Borrowers Forbearance and Reduced Payment Options to Address Financial Hardship, Encourages Others to Do the Same
Honolulu, HI - Hawaii Community Lending (HCL), a nonprofit Department of Treasury certified community development financial institution, announced today it will be offering its borrowers forbearance and reduced payment options in order to address the economic fallout from the coronavirus impacting its loan borrowers.
HCL provides consumer, housing, and business loans to unbanked and underbanked individuals, families, and entrepreneurs across the State of Hawaii. All HCL borrowers are unable to qualify at credit unions and banks and often rely on high-interest alternative financial services, like payday lenders, to make ends meet.
“Our borrowers are facing extreme and sudden hardship as a result of being laid off and seeing their work hours reduced through no fault of their own,” said HCL Director of Lending and Development, Jeff Gilbreath. “We are committed to provide the relief that is necessary for our borrowers to remain economically resilient. We hope other financial institutions in Hawaii will follow suit and temporarily lessen the debt burden our people are experiencing so we do not further exacerbate the negative economic impacts we are already seeing.”
According to Gilbreath, the Federal Reserve Bank of Chicago highlighted research in a 2016 report “
How did the Great Recession affect payday loans
” on the increased use of payday loans during the Great Recession. He fears the impact this will have on the Hawaii’s economy in light of the fact that the majority of payday lenders in the islands are headquartered off-shore and charge upwards of 460% APR.
“Our hope is that we will be able to expand our product offerings to include emergency grants and low-interest loans so our Hawaii residents do not have to rely on payday loans and other products that charge 40% to 460% interest,” continued Gilbreath. “If there are foundations, banks, and other investors ready to join us, we welcome them to come onboard. If you or someone you know needs a loan, call us. It is critical that we keep capital in Hawaii for Hawaii.”
HCL borrowers who wish to request a forbearance or reduced monthly payment, should contact its Loan Servicing Manager, Kahaunani Mahoe-Thoene at 808.775.9147 or email@example.com.