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Board of Agriculture approves state-guaranteed aquaculture loan for Blackhat Enterprises
Summary
The Hawaii Board of Agriculture approved a staff-recommended 80% loan guarantee for Jeremiah Blackhat to refinance high-interest debt and expand an aquaponics and tilapia operation on the Kona Coast. The lender is Feed the Hunger Fund and a $10,000 grant from the Healthy Food Fund was reported.
The State of Hawaii Board of Agriculture on Wednesday approved a staff recommendation to provide an 80% state guarantee for an aquaculture operating loan to Jeremiah Blackhat, doing business as Blackhat Enterprises, to refinance high‑interest debt and expand an aquaponics and tilapia operation in South Kona.
HDOA staff member Jillian Scheibe presented the request from the Agricultural Loan Division. Scheibe said the lender is Feed the Hunger Fund and the loan guarantee would support an 80% guarantee on a $90,181 loan. She said the applicant has contributed $32,000 for excavation to support expansion and said the Healthy Food Fund initiative is providing a $10,000 grant to the business. Scheibe described a seven‑year term at a fixed interest rate of 5.5% and a repayment schedule that begins with a short payment moratorium followed by interest‑only months and then principal and interest payments until maturity.
The loan would refinance higher‑cost debt, bring a Bishop Estate lease current and provide funds to expand tank and bed space to meet market demand for aquaponic vegetables and tilapia, Scheibe said. Staff recommended approval based on the applicant’s business record, marketability and projected cash flow; staff also noted that the state guarantee does not require expenditure of state funds.
Board members raised no public testimony and the motion to approve was moved by Jimmy Gomes and seconded by Diane Le. Chair Sharon Hurd announced there were no objections or recusals and that the motion was approved.
The board record indicates the loan would be secured by a first position financing statement on new equipment and a junior financing statement on other business assets, vehicles and inventory. The HDOA presentation said the operation occupies multiple HDOA leases totaling roughly 20 acres and that the current aquaculture system sits on a three‑acre lease with planned expansion on an adjacent parcel.
