Jawmin Sandlewood Exports

LOAN AMOUNT: $5,000,000

LOAN TYPE: SBA 7(a) International Trade Loan

INDUSTRY: Agricultural Production

LOAN DETAILS

Location

Kealakekua, Kona, Hawaii

Term

25 years

History

To refinance the existing 1st Mortgage debt that was used to acquire three agricultural zoned parcels totalling 2,780 acres. 100% of the product is sold via exports.

These parcels were former ranch land used to graze cattle, however, it is now used exclusively for the Sandalwood production. The collateral includes the land as well as existing Sandalwood tree inventory of approximately 8 million pounds of mature and harvestable sandalwood. Hawaii Sandalwood has been harvested and sold since the early 1800s.

The farm operates as a 100% exporter of sandalwood with buyers generally located in Asia, Middle East & Far East. Sandalwood has been over-farmed and is in great demand and short supply in India and China. All parts of the tree, except the leaves and bark, have value and are saleable. Sandalwood is prized for its fragrance. Sandalwood oil is used in cosmetics and perfumes. It is also used in religious as well as burial ceremonies. The best sandalwood is good for carving and used to create furniture and art.

Sandalwood is planted or grown in higher elevation tropical mountainside terrain. Sandalwood is a parasitic tree which grows through attaching its roots to other plant species. It is replanted and grown with a common host tree in Hawaii to produce a sustainable sandalwood farm for many, many years to come.

This loan was originated and underwritten by Thomas USAF who also purchased the guaranteed portion of the loan from the lender.