Bill > SB3165

This bill establishes the Hawaii Micro-Lending Credit Enhancement Program within the Department of Business, Economic Development, and Tourism to address the limited access to small-dollar loans for Hawaii's small businesses, particularly startups and sole proprietors. The program will offer "credit enhancement," which includes mechanisms like loan loss reserves or partial guarantees, to encourage lenders to provide "micro-loans" (loans up to a certain amount determined by the department) to "qualified borrowers" (for-profit small businesses operating in Hawaii). To fund these enhancements, the program will allow borrower fees and state matching contributions to create lender-held loan loss reserve accounts, which will absorb initial losses on these loans. A dedicated "Hawaii Micro-Lending Credit Enhancement Special Fund" will be created to hold legislative appropriations, federal funds, grants, donations, and other revenue. The department will administer the program, potentially contracting with a third-party administrator, and will be required to report annually to the Legislature on the program's performance, including the number and dollar amount of loans supported, participating lenders, and geographic distribution. The bill also appropriates funds for the establishment and operation of the program for the fiscal year 2026-2027.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3165&year=2026