 My name is Cheryl Matsuoka, the executive director of the Hawaii Restaurant Association and the Hawaii Restaurant Association Educational Foundation. Mahalo for joining me here on Restaurant Hawaii on the Think Tech platform. Today, we have a great show. It's all about the Maui Bridge Grant and answering everyone's questions. And we have a lot of people on the show that will be able to provide much needed information. I'm gonna recap again from the very beginning, you know, the aftermath of the wildfires on Lahaina has left local businesses really grappling for the situation that they're in. Requiring urgent financial assistance to facilitate the recovery, we're grateful for the Maui Business Bridge Grant. It's a multiple, sorry, everyone, Maui Business Bridge Grant. And as this is, as we all try to just keep going with our businesses, it's offering a lifeline to many businesses who are just trying to say afloat. And I have three guests today and I'd like them to introduce themselves. First, may I have Jessica? Jessica, could you please introduce yourself? Aloha, Bobby Hula, Hina. Thank you, Jessica. And Senator, could you please introduce yourself? Yes, hi, I'm State Senator Angus McKelvie. I represent District 6, which includes West Maui, Lahaina. Thank you, Senator, for taking the time out on being with us today. We really appreciate it. David. Aloha. My name is David Daly. I'm the Director of Business Development at Maui Economic Opportunity here in Waianuku, Hawaii. Thank you. Thank you, everyone, for joining us today. I have received so many phone calls on this Bridge Grant and I refer everyone back to you, David, because they have a lot of questions, they've been preparing their documents and they need to now know what to do as the next step. And we're grateful because Jessica will be applying for the Maui Bridge Grant. So, David, first, who can apply for this grant? Any business in Maui County, so that is Maui Molokai and Lanai, that has been affected either directly or indirectly by the Maui wildfires. Very nice, David, and that clarifies a lot because even if they weren't actually in, how can I say this, David, correctly, they were affected. Indirectly. Directly. They were outside of the Lahaina area, but they were affected. They still should apply, right? Absolutely. Thank you. Thank you. Jessica, you have a question for David. Yes, how do we apply? You would go on to the application portal, which I should have written this down in my notes. I believe it is Maui Small Business Bridge Grant.org. And the application portal is one portal for all businesses that apply for the grant, but the way that the applicants are serviced by not only MEO, but also by another nonprofit, which is Maui Economic Development Board, we are splitting the duties of administering this grant to these businesses. So the way that it's split up is MEO handles businesses that gross $300,000 and under, and Maui Economic Development Board will handle all the businesses that gross $300,000 and up. As I know, there's no cap on the gross income that is eligible to apply for this grant. There is a cap on the award amount, but that's where you would go to apply through that portal. Jessica, do you have any other questions for David? How can we use the fund? You can use the funds to provide any, you know, spend this money on anything that will allow your business to recover. So that's the key. The key word is recovery, and that's really what these funds are for. There are a few things, two things in particular that you cannot use the funds for. So I'd rather go into what those are rather than tell you you could basically spend it on anything that's gonna benefit the recovery of your business. That can go for equipment, it can go for a new inventory, it can go for lease rent on a new location, it can, a multitude of things that would benefit the business that has been disrupted. Things that cannot, the money cannot be used for are, any lease rent or mortgage payment on a property that has been destroyed by the fire. Any utility payment, water, gas, electric, on a, that is in rears on a property that is currently, or it has been destroyed by the fire. Those are really the only two, well, excuse me, I'll take that back. The funds cannot be used for any salaries, benefits and salaries of employees going forward. Other than that, the funds can be used for anything else. Thank you, David, for that comprehensive answer. And Sultner, you know, the question I keep getting is, is this a one-time grant or will this keep, will the fund keep getting funded? Well, first of all, it's important to know this is a county program, I'm a state legislator. That being said, my understanding is that it buys very nature. It's a one-time program because it's gonna be run until funds are exhausted. There's a couple of buck, three buckets being broken up. Maui Economic Opportunities Handling Businesses from zero to 300,000. And then those above will be handled by Maui Economic Development Board. Applicants of 600,000 or more are gonna be automatically wait listed because of the huge amounts of money. But it's gonna be once it's exhausted unless it's replenished by the county or the state and a combination of both would probably be the most pragmatic discussion. It would cease to go forward. But clearly this is gonna be a need that's gonna continue. And I have some concerns about the limitations in there because many businesses are gonna still be on the hook for rent and lease payments and mortgages. We've been asking repeatedly for deferrals and also to include business rent as part of the emergency proclamation. And with this limitation in there, you're almost having restaurant owners, Rob Peter to pay Paul because they're using the money for a new location yet they're on the hook for an old location. So hopefully these things can be discussed when we try to build on the program next session. But those are some of the concerns I think that have come that again though to have this going forward to have people like Jessica and others be able to take advantage of it is very critical. The other concern I do have is the salary limitation for employees. As we've seen on the mainland with some of the disasters when the businesses close up and get no support, the employees leave, they now have to go out and get new employees, skilled employees. Classic example, restaurant in West Maui closed, couldn't get support, sous chef, top person, skilled, took a job elsewhere. And they're like probably not coming back because I'm gonna be set up working in another restaurant chain. Now you gotta go and recruit a sous chef to come back in La Jaina where the rents are out of control, housing is limited to try. So this is what worries me about these limitations. And hopefully we can work with the County on trying to create flexible funding for these allotments with through the legislative process to assist. Thank you. Thank you, Senator for understanding all of the challenges that the restaurants are going through because you hit the nail right on the head. This is exactly the calls that I get from concerned restaurateurs that feel that a lot of people have left the island and... Yeah, it's a real thing. I mean, I call out Santa Cruz because they saw it and you lose the character of the town because the businesses even when they wanna come back can't come back because they don't have the employees. I think one of the other limitations which I think is good but it does bring up an issue is that you cannot use the bridge funds for repayment of loans. And a lot of businesses had to take out loans to turn COVID and which they're still paying back. And so while I understand it is a pragmatic limitation there is that residual effect which is dragging businesses down. This is why so many restaurants in particular only had liability didn't have content insurance. And that's a whole nother phenomenon I'm sure we can spend a whole episode on. But these are some of the hopefully these things can be looked at in the reality what businesses coming out of COVID now being thrust into this are facing. Well, it sounds like you've been speaking to the same restaurant I've been speaking to every day Senator because you really have the pulse of the pain that the restaurant. So thank you. Those are my neighbors, my new neighbors and friends we rub elbows all together and they're eager to get back to work but they need help. Yes. If we're gonna preserve the brand if we're gonna continue to bring back the world-class visitor destination of which the restaurants were a huge magnet of the draw. It wasn't the predatory makeup stores that brought people lined up. It was the restaurants and the multiplier effect that they have was profound. And so to me, this is a core industry of economic needs to be preserved and we need to dig deep to do it. Thank you. Thank you for understanding that. And now I'm gonna ask Jessica do you have any other questions for David? Right now, how long are we gonna receive the money? As of today, I would say the this is my best guesstimation due to just the number of applicants and the process that he's going to take to actually disperse the funds because he's first come first serve. So where you are application-wise in the queue is gonna determine on your, you know, how soon you're served. I would love to say that the money would be going out this week. But as of today, I can't say that. Hopefully it will be early next week. We'll start to be able to, so that businesses will be able to receive some of these funds immediately. Okay. Thank you, thank you. Now this question is for Senator, are there partnerships with local organizations to enhance the effectiveness of the grant program? I know that there's places where people can act before help. Yes, the Maui Chamber of Commerce has been trying to lend their support to the program. Hawaii Chamber of Commerce has been trying to step in with their own funding for businesses, although it is limited. I think really it's gonna be a partnership with all these organizations and the state in the county and maybe I'll give props to my good friend, Congresswoman Takuta with her help and Senator Hirono's help to try to align funding across all three sources so that we can go ahead and try to enhance the program and bring more resources so that since then we're not a one-time shot of money. I am concerned though that, if it's a first in time, first in line, you're gonna have businesses that are affected but are not burned out completely, getting awards where you have line of businesses that are vaporized who may not get. So I'm hoping that that can be looked at later on because that could cause an unfortunate, unintended consequences of pitting businesses against each other. Yeah, I mean, the hierarchy of needs, the nuclear blast zone analogy I use, we have the vaporized five by eight mile area of La Jaina and then the damage goes up suspensionally but that area, ground zero, we need to ensure that the businesses there like Jessica's are gonna receive the help and not, oh, sorry, you're the end of the line, can't help you by. Yeah, directly affected businesses will have priority. Awesome, well, that's good to thank you, David, for that clarification, so. But sort of the help is needed by all because the contamination of the fallout is affecting all businesses. And also these groups are important and that why restaurant association is very important, plug for you guys in advocacy voices for the things I talked about before that businesses need outside of the grant program. The grant program is critical but it's one of many needs that the government needs to step up. And with these organizations, I believe that they can provide the support and that voice of advocacy that's needed to move the needle, especially in the legislative process. Thank you, Senator. Jessica, do you have a question for Senator? How do a business no, no program? Yeah, she's asking like what are the efforts being made that small businesses can find out about and be aware about this program and have access to the grant program, especially some of the smaller, smaller businesses. Yeah, no, small businesses need to get word of it for sure. And I think it's about matter of communications. You know, I did run a PR from back in the day. And so communications comms in this point is critical. I mean, I'll definitely reach out to Maui Chamber. Maui Chamber has the largest role to play but they need to also reach outside of their membership lists and others to let businesses knows like her but also offer help in actually doing the applications and answering questions and getting help and getting timely responses, you know, including the status and probability of when the funds will be received because a lot of people, you know, businesses may overextend themselves in anticipation of funds received and then they don't appear. And that could be, you know, a huge issue. You're so right, Senator. You know, during the pandemic, we at Hawaii Restaurant Association this video, we're gonna be sending this out, Senator, to all of our subscribers. So if anyone's listening to this channel, please subscribe at HawaiiRestaurant.org. Then you'll get information just like this video right in your inbox. So sending out information, you're correct, Senator. We also are doing this show so that we can give the answers to those people who are impacted and help them through this process. Yes. And one advice, especially to our small or small businesses, many owned by members of our multi-ethnic community is don't, there's no shame, no shame. Close mouth, don't get bed. Get online, make the application, ask questions because the only way, you know, if you don't apply at all, there will be zero chance. But if you apply, there's a good chance that you'll be able to get decisions in need. But, you know, we've all suffered a blow to our pride in all of this. And it is tough to ask for this kind of help. When you, as of August 7th, you had a thriving business and then August 8th, you're put in a position to basically try to get help. So I know it's tough, but to urge everybody to do it because if you don't do it, then, you know, there's zero chance. And this bridge program, I think, is gonna be one of the most important ones going forward and which is why that I'm going to work with the county others to try to see where we can go on the legislative side to continue to expand and support it. Very nice. And you're right, Senator. You know, for everyone watching this video, if you, if English is your second language, please reach out to the Hawaii Restaurant Association. We have other restaurant translators. During the pandemic, Senators, with the PPP and the Restaurant Revitalization Fund and the idle applications, many of our members, English is not their first language. So we were putting them together with translator of every single language that you can imagine. We had the Chinese and the Korean and the Japanese and even all of the Polynesian languages because the Polynesian Cultural Center is a member. So we have resources. So please don't let English be a barrier. I mean, don't let your, maybe English not being your first language be a barrier. Please reach out to the Hawaii Restaurant Association because I know that we can help you. We help many people during the PPP fill out their applications. Like you said, Senator, just get in the portal, just start filling out the application and we can find them help. Exactly. And that's what's so great about the Restaurant Association is they provide network to other organizations, for legal help, for businesses, or their connections to all of these different groups is a really good resource. And there are other groups trying to help both businesses in their capacity as business owners, but as well as residents as well, like the Hawaii Filipino Lawyers Association's work with the Filipino community. There's all of these groups that the HRA is such a great networking to network the resources in. But again, make the application, make the outreach because that's what we really get the ball roll. Yes, and let us know. Let me shout to the Hawaii Restaurant Association if you need assistance and we'll definitely, we wanna help you. So Jessica, do you have another question for Senator? I got a question. If gotta receive these monies, do I need to return back or do we need to pay any tax? So you're asking if this is a repay program and then you have to pay it back and if you pay any taxes on it. I believe, I believe as far as the tax issue goes that you may, you may be, they may be taxable if the grant is awarded, but you have to consult with your own accountant in the tax department to see what the applicability, but it is, there is a, from what I understand because it's a grant program, although when it was first announced, the idea was a grant unless I guess you showed a greater recovery would be converted into the loan. But David, correct me if I'm wrong, but it appears right now it's just a straight up grant program, which if it is, the money would not be paid back. But again, I don't know if that criteria is still in there or not. So I yield to the accounting on that one. Yeah, currently it is not, you're not obligated to pay this back. This is a one-time disbursement of funds and to the Senator's thought, as of right now, it basically would be taxable income for the business. And that's something that we are, I'm now that I, they're having this conversation and it's great we're having the show, because this is something I'll definitely will bring up with the tax department in next session. Because that's kind of unfair. Because again, I go back to this, August 7th, these restaurants were all thriving businesses and of August 8th, no fault of their own, everything was eviscerated and vaporized and gone. And so to turn around and to tax this lifeline is kind of offensive to me. And the fact is that the government should reexamine this and I myself will bring it up for sure with the tax department and next session. Thank you so much Senator. And David, do you have anything to add to that? The only thing that I would add in relation to the tax situation is that we are allowing businesses to receive the award but have the funds be paid to a vendor to eliminate the tax burden on the actual business. So that's an option as well, depending on how the applicant wants to receive the funds. If the LLC receives the funds or the corporation receives the funds then they could be liable for the taxes. But if we disperse the award to a vendor or a couple of different vendors using that award amount then there would be no liability, no tax liability statewide for that business. Very nice, thank you for clarifying that. So everyone we do need to start wrapping up the show so I do wanna give everybody an opportunity to please say your final comments and I just really wanna thank you all for taking the time out and being on this show because this is gonna answer a lot of questions that I've been receiving here at the office. So Senator, he is the Senator of Districts over there and closing statements that you'd like to make. Thank you so much. Thank you so much for having on the show. I'll make it quick because of our internet connection but we're appreciative of the bridge program. It's a very important, much-overneeded thing. Hopefully more funds can be added through the partnership of the different groups in the state and the federal government. However, much more needs to be done. We need deferral for businesses in their mortgages. We need to be able to get the rent relief from the proclamation extended to businesses and we need to look at possibly allowing these grant monies going forward to be used for these things because businesses have suffered because of COVID and this situation coming out of thin air really put them behind the eight ball. So very happy this is going forward. Look forward to working with the county and everybody on expanding this program and hopefully addressing these real-world issues that have been brought up by the restaurateurs themselves and restaurants are what makes the character of the community. If we lose them and the employees, what will come in its place will be a plastic facade of what Lahina once was. Thank you, Senator. Thank you again for all that you do for our community. David, David is with the Maui Economic Opportunity and he is the Business Development Center's Director. So David, with all that you've been doing, we really are grateful for everything. Do you wanna have any closing statements that you'd like to make before we close the show? Sure. Thank you for allowing me to at least explain some of the details of this great program. I absolutely would wish that this would have been months ago, but we can only do what we can do. And really to the thought that was brought up is everyone should apply regardless of anything. If you're a business that's been affected and indirectly affected is there's a number, there's hundreds of businesses that were affected indirectly as well as those who were directly affected by the wildfire. Please go ahead and put your application in just because you just never know. Regardless of whether your wait lists are not, go ahead and put that application in. Thank you so much. And Jessica, I know that you were definitely affected by the wildfire, I am so sorry to hear that. Do you have any closing statements that you'd like to make? So we just hopefully it can find a new location and if we can make new, new start of my business. But I still see living in the government, every people help us find a new location and a new base. But I appreciate your answer, you're helping for us today, a lot of caution. And you give me more energy and more power for go next step. Well, the next step Jessica, don't get me wrong. This is all about right, Senator, right, David? We just need to support them. Yes, that's why, Dr. Lee. Thank you. Thank you. And thank you again to all of the presenters on the show today for joining us. They took time out of their busy schedules to be here to explain the Maui Bridge Grant. And again, I just wanna let all those restaurants and businesses over there in Maui know that we're still here fighting for you. So just let us know what you need. Again, the Hawaii Restaurant Association is the organization unifying, representing and supporting the Hawaii restaurant and food service industry. We'll see you again in the next show. Thank you so much for joining me today.