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 Federally funded extended unemployment compensation – that more than 8,500 Maui County residents have received since 2008 – will no longer be available after Nov. 30 unless Congress acts soon.Based on the failure of a House vote on a bill to extend federal Emergency Unemployment Compensation (EUC), the state Department of Labor and Industrial Relations said late Thursday afternoon that benefits will expire at the end of the month, though news reports indicate that there is a glimmer of hope for the benefits.

The EUC program adds 47 weeks of unemployment insurance after the 26 weeks of state-funded unemployment insurance runs out.

“With over $416 million in EUC benefits issued in Hawaii since 2008, the federal extended unemployment compensation supplemented incomes of our jobless population and reduced the impact of the rising unemployment due to the national recession,” said Pearl Imada Iboshi, director of the state labor department, in a news release earlier this week.

Those currently receiving EUC will continue getting their payments, which are a maximum of $559 a week, until their payment tier runs out. There will be no progression to the next tier in the three-tier program, which is broken down into 20-week, 14-week and 13-week periods.

“The end of the EUC program means that each month approximately 1,600 individuals who exhaust their 26 weeks of regular benefits will not be able to apply for the first tier of federal EUC benefits,” said Colleen LaClaire, deputy director of the state labor department. “In addition, 2,500 individuals who exhaust their first and second tier of EUC benefits each month will not be able to move to the next tier of benefits.”

Unemployed workers should update their information on Hirenet Hawaii, the state’s online job listing service, and seek free job assistance services at the One-Stop Career Centers. For more information and assistance, unemployed workers should go to the websites hirenethawaii.com or hawaii.gov/labor/rapidresponse.

If the unemployment benefits program is extended, it will require passage by the U.S. Senate and the U.S. House. An attempt by House Democrats on Thursday to pass a bill (HR 6419) that would extend unemployment benefits for three months failed in a floor vote, according to Marvin Buenconsejo, communications director for the office of Rep. Mazie K. Hirono, D-Hawaii. The congresswoman whose district includes Maui County was one of the original co-sponsors of the bill.

LaClaire said the department has been informing clients of the potential cutoff of unemployment benefits. The department will continue to accept applications despite the uncertainty about the program.

From July 2008 to September, 8,500 Maui County residents have been assisted by the EUC program, the Research & Statistics Division of the labor department said. Statewide, the number is 48,000.

The department reported that $72 million in EUC payments have been made to Maui County residents since 2008.

Each week, 60 Maui County residents exhaust their state unemployment compensation. Since 2008, 1,500 long-term unemployed people in Maui County exhausted even their extended EUC period, the department reported.

“It’s not a great time, around the holidays” to be cutting off unemployment benefits, said LaClaire in an interview on Wednesday.

The Mortgage Store, a Maui business that was started by investment adviser George Lindell and sold to his daughter, has filed for bankruptcy, with liabilities of about $14.7 million and assets somewhat less.

The state securities commission has received complaints about the business and said it has an investigation pending, but it would not say more.

Several dozen people, most with Maui addresses, are unsecured creditors. Wailuku bankruptcy attorney Ry Barbin, who is handling the bankruptcy, said a case of this size with all unsecured creditors is unusual.

Lindell and his daughter, Holly Hoaeae, also advertised a next-door business called True Wealth Group. . . Living by Design that offers financial and investment advice.

According to Barbin, investors placed money with The Mortgage Store via promissory notes, with a 7 percent return.

The money was used to buy small residential properties, mostly in Texas but also in Maui, Indiana and Ohio.

When the value of the properties fell to below the mortgage balance, Barbin said, with no chance of regaining equilibrium, Hoaeae decided to liquidate through Chapter 7.

The largest listed creditor is owed less than $700,000. The assets have been placed under a trustee, Dane Field, who will dispose of them and distribute the recovery.

Barbin expects the return to be “substantial,” but lenders are not likely to be made whole.

Papers filed in U.S. Bankruptcy Court in Honolulu show that Hoaeae was compensated by more than $1.6 million in 2008 and 2009, and more than $500,000 so far this year.

Lindell, who has had a mortgage business in Kihei for about three decades, sold his business to his daughter about two years ago and had no role in it since, Barbin said. Hoaeae is president, secretary and treasurer.

Hoaeae could not be reached for comment. She has not asked for personal bankruptcy, and True Wealth Group is not seeking bankruptcy.

Hertz Equipment expands to Hawaii

Hertz Equipment Rental Corp. said it has acquired Western Machinery, a construction equipment rental company based in Kapolei.

Terms of the deal were not disclosed.

Founded in 1985, Western Machinery has locations on Oahu, the Big Island and Maui. In addition to equipment rental, the company is also an equipment dealer for Gradall, JLG, Bobcat, Liebherr, Linkbelt and Allied Hammers.

Hertz Equipment Rental Corp. is a wholly owned subsidiary of The Hertz Corp.

“We’re excited to have acquired Western Machinery as this marks Hertz Equipment Rental’s first foray into the Hawaiian market,” said Mark Frissora, chairman and chief executive officer of the Hertz Corp.

Hawaii’s construction industry was one of the harder hit sectors during the recent recession. Construction spending, which declined by 18 percent in 2009, is forecast to drop by another 15.9 percent this year before rising by 2.8 percent in 2011, according to a recent report by the University of Hawaii Economic Research Organization.