Bill > SB1303

This bill updates Hawaii's Agricultural Loan Program to address critical challenges faced by agricultural producers by introducing several significant changes. The bill lowers the interest rate for certain agricultural loan classes to four percent, increases loan limits across multiple loan categories (for example, raising the maximum loan amount for farm ownership and improvement loans from $800,000 to $1,500,000), and reduces the required number of credit denials from two to one for most loan applications. The legislation creates two new loan classes: Class J, which establishes a secured line of credit for farmers with limits ranging from $100,000 to $250,000 depending on collateral, and Class K, which provides loans up to $2,500,000 specifically for growing import replacement crops or participating in the Farm to State program. Additionally, the bill introduces new definitions for "import replacement crops" and "line of credit," and includes provisions to waive credit denial requirements for new farmers, farm trainees, and recent agriculture graduates with smaller loan amounts. The bill also appropriates funds to support these expanded lending capabilities and aims to help Hawaii become more self-sufficient in food production by encouraging larger, more efficient agricultural operations.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1303&year=2026