CPB is the only bank in Hawaii offering an online lending portal for small business

Banks in Hawaii and across the United States continue to navigate a complex economic environment characterized by shifting interest rates and market uncertainties. For example, the Federal Reserve began cutting interest rates in late 2024, with a total reduction of 1.00 percentage points since September. The shift from a high-rate environment to a declining rate scenario created challenges for banks in managing their net interest margins (NIMs).

NIM is essentially that “margin” on which banks earn money from interest. It’s a crucial metric that reveals how healthy and efficient a bank is in its core business of borrowing and lending. A higher NIM means the bank is earning more from its lending than it costs to fund those loans, which boosts profits.

In a higher interest rate environment, banks often see higher NIMs because they can raise loan rates faster than deposit rates. However, competition for deposits—such as those from digital banks—or slower loan growth can put downward pressure on NIMs.

Hawaii banks experienced modest NIM improvements, reflecting their ability to adapt to these conditions. For example, Central Pacific Bank saw a 3.7% increase in net interest income, a metric that banks tend to use as a cushion to invest in lending, technology, or new market opportunities.

Lending to small businesses has long been one of Central Pacific Bank’s strengths. Business Express, a new online application platform that simplifies loan applications, provides 24/7 access, eliminating guesswork and offering transparency about application status. “Whether our customers apply online or directly with a banker, they can still expect the same level of care, convenience, and expertise. It allows a business owner to engage with us the way they prefer,” says Susan Utsugi, Group Senior Vice President and Business Banking Division Manager at CPB.

Utsugi shares an example of a local snack business that needed funds to expand inventory to fulfill an opportunity to provide its product to an airline. “They had to beef up their inventory to do this order and needed the funds to expand quickly,” she explains. The business successfully received a timely loan through CPB’s Business Express. “The convenience and the speed of the process allowed the owner to secure the funds quickly and seize that opportunity with peace of mind.”

For businesses that don’t immediately qualify, the platform offers additional support by automatically considering applicants for Small Business Administration (SBA) loans and generating the necessary documentation. “The SBA loan application process is not always easy to navigate, and so Business Express allows us to respond quickly,” she notes.

CPB’s approach led to recognition from the U.S. Small Business Administration as Hawai‘i’s leading SBA lender, processing more SBA loans than all local financial institutions combined. “We stay close to the businesses in terms of hearing what their needs are, working with other resource partners, so that we can also convey to our customers what resources are out there for them.”

Susan Utsugi, Group Senior Vice President and Business Banking Division Manager at CPB

The small business specialists at CPB know their clients. They understand how small businesses work and what challenges they face. They know that  these  small business owners and entrepreneurs are busy and need to manage their time effectively. It’s not easy for them to get to a bank branch to fill out a loan application.

It was from this premise that a completely new service was born: Business Express. CPB introduced their Business Express online lending portal in 2024, making them the first and still the only bank in the state to offer this ultra convenient service.

Business Express is designed for speed and accuracy. The average user can apply in about 10 minutes and get their approval in 3 business days with no financials required for loans up to $50,000. And the best part?  It’s open 24/7.

A variety of lending options are available through Business Express, including term loans, lines of credit, and SBA loans. This provides the flexibility small businesses need to meet their unique credit needs.

It’s another in a long line of innovative products and services that CPB has created to help Hawaii’s small business market be successful. Like their “WE by Rising Tide” program that supports female entrepreneurs, Business Express is a forward-thinking, fresh solution that empowers small business.

Sponsored by Central Pacific Bank. Member FDIC. Equal Housing Lender.